Currently, there is only one rate cut priced in for Canadian markets and the Canadian dollar, meanwhile investors are bracing for the Federal Reserve to cut rates "dramatically." Photo by Peter J. Thompson / Financial Post

Canada’s dollar is poised to benefit from a smaller interest-rate gap with the United States as the nation’s central bank nears the end of its monetary easing cycle while the United States Federal Reserve gears up for multiple cuts.

The loonie has become an attractive option to buy versus the dollar, with firms such as JPMorgan Chase & Co. and BMO Global Asset Management targeting 1.35-1.36 level by year-end, compared with current price at about 1.38. A lower level means the loonie has strengthened.

“ Canadian dollar is among the cheapest G-10 currencies ver

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