Switch .com Best Exchange Rates .com Best Exchange Rates .com Best Exchange Rates
    eg: USDCAD, GBP/EUR, AUD to USD, 500 Pound to Yen, 15K Dollar Peso, Send Japan

    Canadian dollar CAD Forecasts

    Forecasts for the Canadian dollar change all the time, affected by news events and relative sentiment towards the Canadian economy.

    Updated: Mar 10, 2023  

    Forecasts for any currency, including the Canadian dollar, can change rapidly and frequently, as they are heavily influenced by various factors such as political and economic developments, market sentiment, and news events. For instance, changes in oil prices can have a significant impact on the Canadian dollar, given Canada’s large oil reserves and export markets.

    Other factors that can affect the Canadian dollar include inflation, interest rates, and GDP growth. For example, if inflation rates in Canada rise faster than expected, the Bank of Canada may need to increase interest rates to curb inflation. This could lead to a stronger Canadian dollar, as investors may be attracted to higher interest rates. Conversely, if GDP growth is weaker than expected, this could lead to a weaker Canadian dollar, as investors may perceive the country as less attractive for investment.

    Furthermore, the Canadian dollar can be influenced by global events and sentiments, such as shifts in market risk appetite or political developments in other countries. Therefore, forecasts for the Canadian dollar are often subject to rapid changes based on new information and shifts in market sentiment, making it challenging to predict long-term trends with a high degree of accuracy.

    Canadian Dollar Forecasts for 2023

    The Canadian dollar struggled against the US dollar in February, but the fate of USD/CAD in March would be dependent on the risk-on and risk-off environments in financial markets, not the fundamentals in the US and Canada, as both economies are strongly correlated. Despite a 425 bps increase in this economic cycle, GDP and Consumer Price Index came in lower than expected in Canada, indicating a possible stall in the Canadian economy.

    This shows that the Bank of Canada might hold the benchmark interest rate at 4.5% on March 8. The OECD projects Canada’s GDP growth at 1% this year versus 3.2% last year, with a risk to the downside. Continued housing price declines and adverse wealth effects could put more negative pressure on the Canadian dollar in 2023.

    CAD to USD 90-Day Currency Trend Chart with Hi, Low, Up, Down AlertsCAD to USD at 0.7245 is 2.0% below its 3-month average of 0.7392, having fluctuated within a 4.3% range of 0.7215-0.7524 CAD to USD




    What is a good Canadian Dollar exchange rate?

    Whether the loonie will rise or drop in the future is a difficult question and the answer really depends on many factors. The best way to consider an exchange rate’s relative value is to look at the rate’s history against a range of currencies and in particular against the currency you are interested in exchanging.

    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 GBP

    CAD to GBP 90-Day Currency Trend Chart with Hi, Low, Up, Down AlertsCAD to GBP at 0.5925 is 2.7% below its 3-month average of 0.6092, having fluctuated within a 4.8% range of 0.5925-0.6209 CAD to GBP
    According to recent FX analyst forecasts, the CAD to GBP exchange rate could experience some fluctuations in March due to several factors. The US dollar is expected to remain strong, which could keep the CAD supported against the GBP. However, economic growth in Canada is slower than expected, which could put some negative pressure on the CAD. The Bank of Canada's decision on interest rates on March 8 could also impact exchange rates. As for the GBP, the resolution of the Northern Ireland protocol could provide some support, but growth prospects for the year are subdued. Given these factors, CAD/GBP could trade between 0.5934 and 0.6209 in March. The CAD/GBP exchange rate has been fluctuating within a 4.6% range of 0.5934-0.6209 and is currently 2.6% below its 3-month average of 0.6094. These fluctuations are likely to continue in March due to economic factors and central bank decisions. It's essential to monitor the exchange rate and take advantage of favorable rates for international money transfers involving CAD/GBP. It's important to note that factors such as geopolitical events, economic data releases, and changes in central bank policy could significantly impact the exchange rate in the short term.

    CAD to EUR

    CAD to EUR 90-Day Currency Trend Chart with Hi, Low, Up, Down AlertsCAD to EUR at 0.6723 is 2.5% below its 3-month average of 0.6895, having fluctuated within a 4.5% range of 0.6710-0.7012 CAD to EUR
    CAD to EUR may continue to face downward pressure through March, as recent forecasts by FX analysts suggest. The Canadian dollar has been performing poorly due to lower-than-expected GDP growth and the slow pace of inflation. Furthermore, the elevated central bank rate expectations and the strengthening US dollar are also contributing to the decline in CAD value. As a result, key support points at 0.6720 and 0.6680 may continue to be tested, and we may see CAD to EUR trading between 0.6600 and 0.6950 during this period. Looking at the CADEUR price data for the previous 3-months, we can see that the current rate of 0.6742 is 2.3% below its 3-month average of 0.6898. This suggests a downward trend for CAD to EUR, which may continue in the short term. However, the rate has fluctuated within a 4.5% range of 0.6710-0.7012, indicating that there may be some volatility in the exchange rate. Therefore, if you're planning on making an international money transfer involving CAD and EUR, it may be advisable to monitor the exchange rate closely to make an informed decision.

    CAD to INR

    CAD to INR 90-Day Currency Trend Chart with Hi, Low, Up, Down AlertsCAD to INR at 59.66 is 1.8% below its 3-month average of 60.78, having fluctuated within a 5.1% range of 59.14-62.15 CAD to INR
    Based on recent forex analyst forecasts, we can see that the Canadian dollar has been experiencing a slight downturn for the past couple of months. The CAD to INR exchange rate stands at 59.75 which is 1.7% below its 3-month average of 60.8, fluctuating within a 5.1% range of 59.14-62.15. It is expected that the Canadian dollar may hit a downturn later this year as economic growth slows below expectations. GDP growth in Canada has been estimated to be 1% this year vs. 3.2% last year, presenting a downside risk. Overall, it appears that the CAD to INR exchange rate could fluctuate within the same range over the next few months but could experience minor changes due to any significant global and local economic developments. It is likely that forex analysts and economists will continue to monitor the situation, and investors should keep a close eye on the exchange rate movement to make informed decisions about their international transactions.


    Loading comparison rates...

    ProviderAmountsRateTotal Cost

    Factors that impact the value of the Canadian dollar

    There are several factors that can impact the value of the Canadian dollar in the foreign exchange market. Some of the most important factors include:

    1. Commodity prices: Canada is a major exporter of commodities such as oil, timber, and minerals, and changes in the prices of these commodities can have a significant impact on the value of the Canadian dollar.

    2. Interest rates: Higher interest rates tend to attract more foreign capital, which can increase demand for the Canadian dollar and lead to appreciation of the currency.

    3. Economic growth: A strong economy can lead to increased demand for the Canadian dollar, as investors and traders seek to take advantage of the country’s favorable economic conditions.

    4. Inflation: Low and stable inflation can help to support the value of the Canadian dollar, as it suggests that the central bank is effectively managing the money supply and maintaining price stability.

    5. Government debt: Large government debt can be seen as a burden on the economy and can lead to concerns about the country’s ability to service its debt, which can weigh on the value of the Canadian dollar.

    6. Political stability: Political stability can help to create a favorable environment for investment, which can increase demand for the Canadian dollar.

    7. Trade balances: A trade deficit (where a country imports more goods and services than it exports) can lead to a decrease in demand for the Canadian dollar, as foreign countries have fewer Canadian dollars to reinvest in the country. Conversely, a trade surplus can lead to an increase in demand for the Canadian dollar.

    More Forecasts

    Posted under: #Forecasts #CAD

    Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.