Canadian dollar keeps strengthening against US dollar helped by the advance of crude oil price that has reached $100 a barrel. Raw materials including oil account for about half of Canada’s export revenue. The pair USD/CAD fell from 0.9792 on May 17 to the levels in the 0.9665 area today.

Strategists at UBS claim that Canada’s central bank isn’t in the mode of raising the borrowing costs yet. In their view, loonie will fall to C$1.05 versus its American counterpart by the end of the year. The specialists note that the country’s policymakers will be concerned by the risks of fiscal contraction in the United States and slowdown of the emerging-market growth.

Analysts at TD Securities have put off their forecast of Bank of Canada’s rate hike from July to September. Economists at Canadian Imperial Bank of Commerce decided to keep the forecast of July tightening, leaving though the option to change opinion in case the world’s economic outlook gets worse.

Look for Canada’s CPI report released tomorrow: economists surveyed by Bloomberg expect annual inflation pace to have risen from 3.3% in March to 3.4% in April.


Chart. Daily USD/CAD