The Canadian dollar will regain parity with the U.S. dollar, according to Citigroup (NYSE:C), and should find support in the range of 1.0207 to 1.0225.
In a note to clients, Citigroup said in the short-term the Canadian dollar should reach 0.9931.
Last week's market turmoil brought the loonie down, but that won't last long, as the fundamentals are too strong to keep it at those levels.
The Canadian dollar is increasingly being thought of as a safe haven investment, as the economy of Canada remains strong, and they are positioned for a profitable and long run because of the natural resources available in the country, and the strong demand for those resources from China and other areas of the world, which will go on for many years.
The Canadian dollar will rise with the economic growth of the country, and with little or no sovereign debt issues, is being eyed by investors as an alternative to the U.S. dollar, along with gold.
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