The Canadian dollar could be trading at parity with its US counterpart before the end of the year, it has been predicted.According to the Wall Street Journal's Don Curren, the rally seen in the Canadian loonie so far this month has set the course for parity before the year is through.Michael Woolfolk, senior currency strategist at Bank of New York Mellon, added that the case for parity has risen markedly in the last month.The loonie, so named because of the bird which appears on its reverse face, is particularly sensitive to growth and contraction in the broader economy and is also closely linked to oil and stock movements in the US.With appetites for risk growing, many forex traders have already moved behind the loonie and out of the safe-haven dollar in search of higher yields.Reuters reports that the dollar has fallen in trading this morning (July 31st) after an uptick in the Shanghai Composite Index on the back of a more tolerant attitude to risk in Asia.