What is tradingeconomics forecast for CAD & CAD?

TradingEconomics expected the CAD to be priced against the USD at 1.29 by the end of this quarter, and looking ahead, the USD/CAD forecast will rise to 1.34 in 12 months. In addition to the USD/CAD forecast, the data provider gave price targets for EUR/CAD, GBP/CAD, and AUD/CAD.

What is the CAD/USD exchange rate forecast for 2022?

Analysts at ING Canadian dollar forecast for 2022 saw CAD/USD exchange rate at 1.23 by the fourth quarter of the year, falling from 1.27 in the third quarter. Analysts at the National Bank of Canada were also bullish in their CAD prediction, although less so than analysts at ING.

Why is the CAD rising?

In the case of Canada, this is related to the price of oil, the country’s main export. When oil prices rise, the CAD often rises; when oil prices fall, the loonie will often decline. The BoC kicked off the most recent rate hiking cycle on 3 March 2022 – ahead of the Fed – raising rates by 0.25% to 0.5%.

Why do investors buy more CAD compared to CAD?

As a result, investors will buy more CAD, driving up the demand for the currency, and increasing its value relative to the USD. On the other hand, when interest rates in the US are higher than those in Canada, the USD typically appreciates relative to the CAD.