The exchange rate forecast for the Canadian dollar (CAD) against the Singapore dollar (SGD) indicates a mixed outlook. Recent market updates reveal that the CAD has been partially supported by improved economic indicators, such as a GDP growth of 2.6% and a lowered unemployment rate to 6.5% in November 2025. However, its performance remains constrained due to external factors, particularly fluctuating oil prices, which directly impact Canada’s economy, given its status as a major oil exporter.
Analysts note that the CAD has recently reached 90-day highs near 0.9390 against the SGD, which is 1.1% above its three-month average of 0.929. This range provides a relatively stable trading environment, moving only 2.0% between 0.9206 and 0.9390. The performance coincides with recent oil prices, which are at 7-day highs near $62.29 but remain 2.0% below their three-month average, indicating significant volatility in oil prices that could influence the CAD further. As crude oil prices are affected by the global market dynamics, continued fluctuations may lead to corresponding shifts in the CAD's value.
In terms of monetary policy, the Bank of Canada’s decision to maintain interest rates at 2.25% contrasts with actions from the U.S. Federal Reserve, which has signaled potential rate cuts. This divergence highlights the ongoing trade policy uncertainty, particularly following tariffs imposed by the U.S. on Canadian imports, which has caused additional market volatility and contributed to a depreciation of the CAD.
Meanwhile, the SGD faces pressure from Singapore’s eased monetary policy and ongoing external challenges related to U.S. tariffs affecting key exports. The Monetary Authority of Singapore has made adjustments to support economic growth, particularly amid lower-than-expected inflation and global trade dynamics. These factors suggest that while the CAD could find short-term support from solid economic indicators, long-term performance will heavily depend on oil price trends and external trade relations.
Overall, traders should keep an eye on oil price developments and relevant economic indicators, as these elements will play crucial roles in shaping the CAD to SGD exchange rate moving forward.
