Weaker currency will partly cushion hit from low oil prices

The Canadian dollar, which has slumped in response to low oil prices, weakening domestic fundamentals and an easing in monetary policy, probably still has further to fall. An even weaker currency would benefit non-energy exporters, but it will only partly cushion the negative impact on the economy from the fallout in the energy sector. Accordingly, we expect GDP growth to slow from 2.4% last year to a below-consensus 1.5% this year.