Canadian dollar to rise later in 2023 on more favorable global outlook

TORONTO, Feb 8 (Reuters) – The Canadian dollar is set to rise later this year as the global economic outlook turns more favorable for commodity-linked currencies and investors bet central banks will cut interest rates in 2024, according to a Reuters poll released on Wednesday.

In three months, however, the loonie is set be little changed at 1.34 per U.S. dollar, or 74.63 U.S. cents, according to the median forecast from currency analysts, though that was slightly stronger than January’s forecast of 1.35.

The loonie was then expected to strengthen to 1.30 in a year, a gain of just over 3%, but unchanged from the January poll forecast.

“China is one of the big fundamental drivers for why there is growing optimism … With that demand coming back, it’s going to be supportive of the global economy and it could be a boost to pro-cyclical currencies,” said Jay Zhao-Murray, market analyst at Monex Canada…

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