The Canadian dollar is on the run again as tepid inflation numbers have removed any possibility of a rate hike by the Bank of Canada for the rest of this year and into the first part of 2018.
Inflation of only 1.4 per cent in October had the dollar back under 78-cents again Friday morning.
According to analysts at Merrill Lynch, even if oil prices could go on a run to the upside to $100 per barrel, it still would not stop the Canadian dollar from heading down towards 75-cents US in the New Year.
With the United States poised to raise rates this month and again in January, the currency flows will continue south of the border, as investors look for the safest and best rate of return.
Merrill Lynch joins a chorus of Canadian Banks in forecasting a lower loonie next year.