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Canadian dollar CAD forecasts for 2020

Forecasts for the Canadian dollar change all the time, affected by news events and relative sentiment towards the Canadian economy. This continually updated article reviews CAD bank forecasts and popular cross-rate trends.

CAD in the markets

The Canadian economy is in “way better shape” than the Bank of Canada currently believes, analysts at Scotiabank said in May before labelling the loonie a “seriously” undervalued currency.

Experts at Citibank said in June that USD/CAD would likely fall to 1.30 within 6-12 months, from mid-month rates near 1.315, but they cited escalating global trade tensions as a major risk to this forecast.

CIBC is predicting USD/CAD at 1.36 at the end of 2019 but sees CAD weakness towards 1.40 sometime in 2020 (1.40 hasn’t been seen since early 2016).

The combination of an eroded US interest yield advantage, a broadly positive riskon mood and renewed euro demand, could be a catalyst to push the Canadian dollar along. The combination of an eroded US interest yield advantage, a broadly positive riskon mood and renewed euro demand, could be a catalyst to push the Canadian dollar along.

The Canadian dollar was range bound during the second half of 2019 oscillating between US75c and US76.5c. Mid-year the loonie stormed ahead in June and July, rising to what turned out to be the 2019 high against the US dollar of US76.7cents and to 8-month highs against the euro, pound, Australian and New Zealand dollars. Against the Aussie, a minimal additional increase would take CAD to a 9-year high.

Supporting the loonie was a 10 percent 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/USD - 90 day trend
ALERT:90-DAY HIGHS |
CAD to USD at 0.7562 was trading 3% above AVG:0.7341 with LO:0.7069 and HI:0.7562 (90 days). ALERT: CAD/USD rose to 90-DAY HIGHS.


CAD to GBP



CAD/GBP - 90 day trend
CAD to GBP at 0.5786 was trading 0.9% below AVG:0.5836 with LO:0.5682 and HI:0.5953 (90 days). There are no current rate alerts.


CAD to EUR



CAD/EUR - 90 day trend
CAD to EUR at 0.64 was trading 1.6% below AVG:0.6503 with LO:0.6288 and HI:0.6626 (90 days). There are no current rate alerts.


CAD to INR



CAD/INR - 90 day trend
ALERT:90-DAY HIGHS |
CAD to INR at 56.57 was trading 2.3% above AVG:55.32 with LO:53.48 and HI:56.59 (90 days). ALERT: CAD/INR rose to 90-DAY HIGHS.


 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.