The Canadian dollar, nicknamed the loonie, has leapt to a two-year high around $1.21 against its US counterpart. The Federal Reserve's pace of interest-rate rises is now likely to be slower than initially assumed, while the robust Canadian economy has prompted the Bank of Canada to bring forward its rate hikes. Last week it nudged the benchmark rate up from 0.75% to 1%. GDP growth has hit an annual pace of 4%, notes Theophilos Argitis on Bloomberg. Household spending has reached a nine-year high thanks to a healthy labour market and rising houseprices.
Viewpoint
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