Monday, March 31, 2014
GMP Securities, despite today's rally for the loonie on the January GDP data, still thinks the currency will make a run to C$1.15 versus the greenback before finishing 2014 at C$1.09. It calls the GDP report merely a reversal of December's weather-pressured result and still thinks the metric will rise 2.4% for the year, lagging its 3% estimate for the US. A soft economy driven by "stubbornly slowly improving business investments," along with slow export growth, isn't good for the Canadian dollar, GMP notes. Combined with limited commodity-prices gains amid uneven global GDP growth, it sees the Bank of Canada staying on the sidelines for another year. The greenback is around C$1.1020.