Loonie: All signs Point to Yes

When making predictions for 2008, it is useful to put things in perspective by assessing predictions made at this time in 2007.  With regard to the Canadian Dollar ("Loonie"), most  analysts predicted a rise, but all dismissed the possibility of parity with the USD.  Ultimately, the Loonie rose to 1.10 against the Dollar before ending the year just above parity. With this in mind, experts are predicting the Loonie will continue to appreciate in 2008, with forecasts ranging from modest to stellar.  Some analysts believe the Loonie will
continue to ride the wave of high commodity prices, while others expect the currency to benefit from a general weakness in the US Dollar.  But if 2007 taught us anything, it’s that these predictions should be taken with a grain of salt. The CanWest News Service reports:

Gartman, who two years ago predicted the loonie would reach parity with the U.S. greenback, says the Canadian dollar is poised to rise even further, but on its own merits, and not because of a run on the greenback, which he suspects is already oversold on world exchange markets.

Read More: Loonie’s rise may continue in ’08, say experts