The exchange rate forecast for the Canadian dollar (CAD) against the Israeli shekel (ILS) highlights a complex interplay of various economic factors. As of the latest data, the CAD/ILS rate stood at 2.3225, which is 2.8% below its 3-month average of 2.3889, reflecting significant volatility in recent trading, with movements ranging from 2.3092 to 2.4956.
Recent developments have shown that the Canadian dollar has faced headwinds primarily due to declining oil prices, now at $63.68, which is 3.2% lower than its 3-month average. As a commodity-linked currency, the CAD’s value tends to weaken with falling oil prices. The latest analysts' comments indicate that the CAD is subdued as concerns over global oil oversupply and ongoing U.S.-China trade tensions persist. Additionally, the October jobs report is critical; should data show further cooling in the labor market, it may lead to additional depreciation of the CAD.
Monetary policy from the Bank of Canada will also be influential. Following a recent interest rate cut to 2.5%, the lowest in three years, the central bank aims to mitigate economic risks and support the labor market, but this could further weigh on the CAD's attractiveness to investors.
In contrast, the Israeli shekel has shown strength, appreciating against the U.S. dollar by approximately 9.3% in the second quarter of 2025, largely due to improved sentiment and easing geopolitical risks. Recent reports on declining inflation in Israel to 2.5% may entice the Bank of Israel to consider interest rate cuts, which could support the shekel's value even further.
Analysts believe that the loonie's trajectory will depend heavily on oil market trends and the Bank of Canada's future policy moves, while the shekel could maintain its strength due to solid economic fundamentals and diminishing geopolitical tensions. This sets a delicate balance for the CAD/ILS exchange rate outlook, with movements likely to be influenced by upcoming economic releases and changes in global commodity prices.
Overall, the interplay of these factors suggests a cautious outlook for the CAD amidst pressures from oil prices, while the ILS may benefit from a stronger domestic economic climate, thereby influencing the CAD/ILS exchange rates in the coming weeks.
