Forecasts for the Canadian dollar change all the time, affected by news events and relative sentiment towards the Canadian economy.
Last year, 2020 the year of COVID, Canadian dollar forecasts were almost entirely driven by the effects and response to the Coronavirus pandemic rather than any fundamentals of the Canadian economy.
However as we progress through 2021, the Canadian dollar is being buffeted by predictions of rising interest rates, inflation and the oil price as the world starts the slow path to recovery from the pandemic.
CAD Market Trends and Predictions
In 2021 the Canadian dollar has risen as a global economic recovery takes hold, with larger gains if the Bank of Canada is seen to be preparing to reduce monetary stimulus, economists say.
This contrasts to last year when CAD exchange rates were very volatile driven almost entirely by the effects of the Coronavirus pandemic rather than any fundamentals of the Canadian economy.
CAD exchange rates have gained amid Canada’s improved economic outlook and recovering oil prices. Early success in controlling COVID-19 has helped the Canadian economy to rebound as massive government aid boosted consumer spending and low interest rates have fueled a surge in the housing market.
Supporting the loonie has been a rise in the oil price (oil is among Canada’s most exported products but is volatile and can’t be relied upon), a large and welcome jump in inflation, and dovishness at major central banks of the world, including the Federal Reserve, ECB and RBA.
The following sections show a summary of bank forecasts for popular GBP cross rates that we have reviewed, you can view each forecast article for more details.
CAD to USD
CAD to USD at 0.8015 has fallen 1.5% below its 90-day average, range 0.7843-0.8308.CAD/USD Rates
OFX say that USD/CAD could mostly trade between 1.20 and 1.25 until the Jackson Hole meeting at the end of August. USD-CAD Forecasts
CAD to GBP
CAD to GBP at 0.5764 has fallen 1.1% below its 90-day average, range 0.5716-0.5923.CAD/GBP Rates
It has been a volatile year for CAD/GBP which has oscillated between in a 8 percent band between 0.56 and 0.60, making it important for British or Canadian expat workers, who represent one of the largest groups remitting money from both countries to keep an eye on the exchange rate. CAD-GBP Forecasts
CAD to EUR
CAD to EUR at 0.6754 is just below its 90-day average, range 0.6648-0.6843.CAD/EUR Rates
The CAD/EUR rate has steadily increased (up around 7) since it’s lows around 0.63 in August last year. CAD-EUR Forecasts
CAD to INR
CAD to INR at 59.61 is 0.7% below its 90-day average, range 58.78-60.74.CAD/INR Rates
May and June has seen the Indian rupee trade continue to trade around 60 to the CAD dollar. INR sank to this level in April on an announcement from the Reserve Bank of India. CAD-INR Forecasts
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