Recent developments affecting the CAD to TWD exchange rate indicate a mixed outlook influenced by various factors.
The Canadian dollar (CAD) has faced challenges recently, retreating as oil prices fell to a four-month low amid oversupply concerns. Analysts have noted that the loonie is closely tied to oil price movements, and with oil now trading at approximately 65.45 USD, 3.5% below its three-month average, the CAD's value is under pressure. Currently, CAD to TWD is trading near 21.90, reflecting a modest gain of 0.5% above the recent three-month average of 21.78. This stability is noteworthy given that the CAD has traded within a 4.6% range recently.
Market forecasts suggest potential for the CAD to rebound in the coming months, primarily if the U.S. Federal Reserve proceeds with anticipated interest rate cuts. A recent Reuters poll indicates that such cuts could weaken the U.S. dollar, potentially resulting in a 2.8% appreciation of the CAD. However, the current declining trend in oil prices and a contraction in Canada's manufacturing sector, where the S&P Global Canada Manufacturing PMI fell to 47.7 in September, raises concerns about future CAD strength. Additionally, ongoing uncertainties related to trade agreements may adversely affect the currency's outlook.
On the other hand, developments surrounding the New Taiwan Dollar (TWD) remain steady with the central bank maintaining interest rates amid projected economic growth. The TWD has faced challenges from external pressures, including U.S. tariffs and currency volatility. Recent statements from Taiwan's central bank highlight the need for policy flexibility in response to these international trade tensions.
In summary, the CAD's future performance against the TWD seems contingent on oil market trends and recent monetary policy decisions, with market analysts suggesting a potential rebound should the U.S. economic landscape change. Businesses and individuals engaged in international transactions should monitor these factors closely as they may influence exchange rates significantly.
