Analysis of recent dollar → loonie forecasts for 2024. We collate forecasts from respected FX analysts together with the latest US dollar to Canadian dollar performance and trends.
Forecasts for USD to CAD
Recent forecasts indicate a strong trajectory for the US dollar (USD) against the Canadian dollar (CAD), largely fueled by robust inflation data and geopolitical uncertainties. The USD soared following unexpectedly high headline and core inflation figures, prompting market analysts to reassess Federal Reserve interest rate expectations. This upward momentum may be further supported by upcoming US producer price inflation data, which could hint at sustained inflationary pressures. Economists noted that the political landscape, particularly influenced by Donald Trump’s pro-business policies, continues to bolster the USD, despite his rhetoric surrounding a weaker dollar. Notably, financial institutions like JPMorgan, Goldman Sachs, and Citi expect additional strength in the greenback amidst cautious market sentiment.
On the flip side, the CAD faces headwinds primarily due to tariff concerns stemming from the new Trump administration, which could impose significant trade barriers affecting Canadian exports. With oil prices down and the Canadian economy heavily reliant on commodity exports, the CAD is particularly vulnerable to fluctuations in crude prices. Currently trading at 1.4180 against the USD, the CAD has remained relatively stable, hovering close to its 3-month average but distinctly influenced by oil market dynamics—recently at 74.64, just below the 3-month average of 75.24, amidst a notable volatility range. FX analysts warn that ongoing tariff rhetoric and lower oil prices pose risks to the CAD's performance, especially as investor sentiment leans towards USD strength and the positive effects for risk assets in the market.
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Will the US dollar rise against the Canadian dollar?
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Forecasts disclaimer: Please be advised that the forecasts and analysis of market data presented on BestExchangeRates.com are solely a review and compilation of forecasts from various market experts and economists. These forecasts are not meant to reflect the opinions or views of BestExchangeRates.com or its affiliates, nor should they be construed as a recommendation or advice to engage in any financial transactions. Read more