Q: Any thoughts on the relative strength of the US and Canadian economy in the next 6 months, especially with regard to currency exchange rates?
5i Research Answer:
Six months is a short time frame, but based on consumer spending, jobs, rates and outlook, we would continue to see the US as 'stronger' than Canada. Without our population growth, it is likely Canada would already be at near-recession levels. Canada has already cut interest rates twice, and the US none (expected soon). Thus, we would still see the US dollar as stronger in the short term.