Canadian dollar CAD forecasts for 2020

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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.

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Canadian dollar forecast

CAD in the markets

Growing fears of the coronavirus outbreak has moved the market into safer currencies such as the USD and away from AUD, NZD and CAD.

The threat of proxy war between the US and Iran in Iraq also pared back some of the gains the Loonie had made coming into the New Year.

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 USMCA was signed by the United States, Mexico and Canadian on November 30 at the G20 Summit in Buenos Aires. Any delay to Canadian ratification of the USMCA trade deal would have likely depressed sentiment on Canada’s currency.

CAD cross-rate trends & forecasts



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).

CAD/USD – 6 month chart
1 Day+0.9%0.708506 Apr 2020
7 Day+0.6%0.710331 Mar 2020
30 Day-2.6%0.734008 Mar 2020
3 Month-6.8%0.767108 Jan 2020
1 Year-4.9%0.751108 Apr 2019
5 Year-10.2%0.795909 Apr 2015
10 Year-28.2%0.994610 Apr 2010

*For period to 07-Apr 21UTC when CAD/USD was 0.7146


CAD/GBP – 6 month chart
7 Day+1.2%0.572531 Mar 2020
30 Day+3.4%0.560508 Mar 2020
3 Month-1%0.585308 Jan 2020
1 Year+0.7%0.575108 Apr 2019
5 Year+7.1%0.540909 Apr 2015
10 Year-10.5%0.647610 Apr 2010

*For period to 07-Apr 21UTC when CAD/GBP was 0.5793


CAD/EUR – 6 month chart
7 Day+1.8%0.644231 Mar 2020
30 Day+1.8%0.644608 Mar 2020
3 Month-5%0.690308 Jan 2020
1 Year-1.7%0.667308 Apr 2019
5 Year-12.1%0.746409 Apr 2015
10 Year-11.4%0.740010 Apr 2010

*For period to 07-Apr 21UTC when CAD/EUR was 0.6559


CAD/INR – 6 month chart
1 Day+0.3%53.830706 Apr 2020
7 Day+0.9%53.510531 Mar 2020
30 Day-0.6%54.317508 Mar 2020
3 Month-1.5%54.806908 Jan 2020
1 Year+3.3%52.249608 Apr 2019
5 Year+8.9%49.576709 Apr 2015
10 Year+22.6%44.036810 Apr 2010

*For period to 07-Apr 21UTC when CAD/INR was 53.9994

You can also read our full Foreign Exchange Guide to Canada.

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