The Loonie’s Riding High

The Background 

Seth Rogen isn’t the only Canadian getting high. The loonie enjoyed quite the spike yesterday, soaring to more than 81 cents US before settling down at 80.81. Experts believe the jump is a result of today’s expected key interest rate hike, as well as uncertainties around the world, including the situation with North Korea, how Brexit will play out for Britain and the EU and what the future holds for NAFTA. Oil futures were also up yesterday, gaining $1.37 per barrel. CBC

What Else You Need to Know

While the key interest rate hike isn’t a done deal (a senior economist at CIBC Captial Markets said “it’s not a slam dunk by any means”), most experts predict that last week’s good GDP news means we’re heading for a rate raise. The only real question is when. The Bank of Canada makes eight interest rate decisions each year, which means the next one is right around the corner. So if it’s not today, then it’ll probably be next month…but either way, most agree that it’s coming.

What’s Next?

The Bank of Canada will make an announcement regarding the key interest rate at some point this morning. (Expect word to hit the airwaves around 10am EST.)