Forecasts for CAD to TWD
The recent forecasts for the CAD to TWD exchange rate highlight the Canadian dollar's (CAD) close correlation with oil prices and economic fundamentals. Currently, the CAD is experiencing volatility, largely influenced by fluctuating oil prices. Analysts note that the currency recently traded at 90-day lows near 22.22 TWD, which is 3.6% below its three-month average of 23.06. This period of depreciation mirrors the current downturn in oil prices, with crude trading at 90-day lows of 61.29 USD, a significant 13.2% below its average of 70.61 USD over the same time frame. Consequently, as a major oil exporter, Canada’s economy is sensitive to oil price movements, directly affecting the value of the CAD.
Market experts indicate that with limited Canadian economic data available, the CAD's movements are likely to continue responding to the dynamics in the oil market and overall USD performance. Price fluctuations in oil significantly influence Canada’s economic health, and as such, when oil prices enhance, the CAD typically strengthens. Conversely, ongoing declines in oil prices can exert downward pressure on the currency.
Furthermore, CAD traders should monitor key factors like the Bank of Canada’s (BoC) monetary policy decisions, which can weigh heavily on investor sentiment and influence the CAD's trajectory. While higher interest rates can attract capital and bolster the loonie, lower rates may have the opposite effect. As the global economic landscape evolves, the performance of the U.S. economy—Canada's largest trading partner—will also be crucial for the CAD outlook, especially in the context of potential trade tensions.
On the other side, the Taiwan Dollar (TWD) faces its challenges. The imposition of a substantial 32% reciprocal tariff on Taiwanese goods by the U.S. coupled with potential geopolitical tensions related to China may hinder TWD's performance. Analysts suggest that a global tech slowdown could further impact Taiwan's economy, specifically its significant technology and semiconductor sectors.
Overall, future CAD to TWD exchange rates will largely depend on oil price trends, BOC policy decisions, and global economic conditions. With both currencies susceptible to external shocks—Canada’s from commodities and the U.S. economy, and Taiwan’s from geopolitical strains and trade relations—the exchange rate forecast remains uncertain. Investors should keep a close watch on upcoming economic indicators and commodity price fluctuations to navigate this volatile currency pair effectively.
