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        Canadian dollar will remain strong in the coming year


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The Canadian dollar has risen nearly 4% since May, as signs of economic recovery in Canada have become more evident after a slowdown in late 2018 and early 2019.
Canada's unemployment rate fell to a record low of 5.4% in May, and two of the Bank of Canada's three core inflation indicators exceeded the central bank's target of 2%.
"Canada's economy is doing well, inflation is on target, and the Bank of Canada is not in a hurry to make any policy adjustments," said Eric Theoret, exchange rate strategist at Bank of Canada.
The Bank of Canada will make a decision on interest rates next week and has hinted that it will continue to hold its ground and monitor economic trends.
By contrast, the Federal Reserve hinted in June that it might cut interest rates as early as July, as risks to the U.S. economy rose, particularly those associated with the U.S. -China trade war and the downturn in inflation.
"As far as the Fed is concerned, there may be more incentive to make some policy adjustments. In this respect alone, the Canadian dollar has reason to appreciate, "Theoret said.
The survey of nearly 50 foreign exchange analysts showed that the Canadian dollar fell more than 1% to C$1.32 against the US dollar in three months, and will appreciate 0.5% to C$1.30, or C$0.7692, a year from Thursday's close of around 1.3060.


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