Is the Canadian dollar turning to be a safe haven?

• The lower oil prices would have net negative impact on  Canada.
• In January Bank of Canada   had  a 25-basis-point reduction in the policy interest rate.
• The economy saw no growth in the first quarter.
• Non-energy exports   have been doing well.
•  Business Outlook Survey shows that capacity constraints are encouraging exporters,  promising new investment.  
•  An annual growth of 1.9 per cent expected this year.  
• Inflation as measured by total CPI today is running at about 1.2 per cent, well below the  2 per cent target.

• Yet the CAD is rising. Is it now the North American Safe haven?

 

CAD-USD
2015-04-27: 1 CAD = 0.8261 USD
Source: Bank of Canada 

Without any risk or responsibility

Australian RB Guv predicts some turbulence in asset, forex markets. (Talking down Aussie Dollar?

RB Australia, Governor had this to say in his remarks on 20 March 2015 to the American Chamber of Commerce in Australia at Melbourne:

"It is expected that the Federal Reserve will, some time this year, lift the federal funds rate accelerator off the floor. If that happens there will no doubt be some disruption, as always, and more so as it will be the first Fed tightening for nine years and the ECB will be easing policy at the same time. So there is likely to be some turbulence in asset and foreign exchange markets. On the whole, though, I think we should regard the Fed's likely actions as a positive development. Fed policy is still likely to be quite expansionary for some time. " 

By his admission "In Australia, international competitiveness is improving, due to the declining Australian dollar."

The Canadian Economy  may also welcome recent strengthening of the dollar. 

CAD-USD Noon Rate

Source : Bank of Canada

Without any risk or responsibility on the part of the author.