Future of Canadian Dollar
Goldman Sachs (NYSE:GS) raised its outlook for the Canadian dollar, saying over the next year it should be stronger than originally anticipated.
Goldman said the stronger-than-expected economic recovery has a lot to do with their changed outlook, and expect the Bank of Canada to raise interest rates in the third quarter in response.
Although I agree that the Canadian dollar will remain strong in light of the increasing demand for commodities by China and other emerging nations, I do question Goldman Sachs' assertion we're in a stronger recovery than thought, as there's still plenty to suggest if we're in a recovery at all, it's a very weak one.
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