The relative response to the coronavirus pandemic of Canada and the US plus oil market volatility are affecting the USD to CAD exchange rate in 2020.
In August, the Canadian dollar strengthened amid USD weakness and as the U.S. and China indicated progress on their phase one trade deal, boosting appetite for riskier assets. An increase in the price of crude oil by about 8% in August has helped the currency to hold gains against the euro and the US dollar. Other positive news favored the CAD; recent unemployment data exceeded expectations, dropping from 12.3% in June to 10.9% in July. Bank of Canada is expected to announce a hold on interest rates at 0.25% on September 4. For the Canadian dollar’s performance in September, watch equity markets as an indicator of continued riskon sentiment, as well as crude oil performance. September Currency Update
Note that forecasts and predictions for the USD/CAD exchange rate change all the time, affected by news events and relative sentiment towards the Canadian and US economies and this exchange rate is even more volatile than usual because of the uncertainties around the Coranavirus pandemic.
You can read about other USD exchange rate forecasts here USD Trends and Forecasts for 2020.
This 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.
The following table looks at the change in the USD to CAD exchange rate to the present day for periods going back upto 10 years:
| USD/CAD rate | Change | Period |
|---|---|---|
| 18 Sep 2020 : 1.3205 | 1.4% ▲ | 1 Week |
| 26 Aug 2020 : 1.3142 | 1.9% ▲ | 30 Days |
| 27 Jun 2020 : 1.3687 | 2.2% ▼ | 90 Days |
| 26 Sep 2019 : 1.3271 | 0.9% ▲ | 1 Year |
| 27 Sep 2015 : 1.3328 | 0.5% ▲ | 5 Years |
| 28 Sep 2010 : 1.0311 | 29.8% ▲ | 10 Years |
USD/CAD 10 year historic rates & change to 25-Sep-2020 : 1.3388