Forecast: BULLISH

The Bank of Canada hiked interest rates twice in the first half of 2017 which caused the Canadian Dollar to be very bullish throughout the year. Canada has now recovered from the oil crises in 2014 which saw oil prices drop from $114 per barrel to $26 per barrel. The Bank of Canada cut interested rates in an attempt to deal with the rapid decrease in income during the oil crisis.

After the struggle, the economy has now adjusted to the lower oil price. This has been proved by strong GDP growth, lower employment and higher inflation throughout the year. Interest rates are now back to the levels they were before the oil crisis. It is expected that the Bank of Canada will continue to raise interest rates in the first half of 2018.

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