Reuters poll: Canadian dollar to weaken as policy path diverges with U.S.

According to Reuters, the survey of close to 50 foreign exchange strategists suggested that while the loonie may gain a little in the short term on expectations of stronger first-quarter economic growth in Canada, it will weaken to C$1.35 per U.S. dollar in three months and close the year at the same level.

Key quotes (via Reuters)

• Forecast: c$1.340 in a month, c$1.350 in 3, 6, 12 months (vs c$1.328, c$1.350, c$1.350, c$1.360 in March poll)
• The Canadian central bank is not expected to boost rates until 2018
• The U.S. Federal Reserve raised rates in March - its second hike in three months - and plans to hike twice more this year
• The Canadian dollar will weaken over the coming months, pressured by an uncertain economic outlook and the prospect of higher interest rates in the United States