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+0.1%0.752524 Feb 2020
7 Day-0.2%0.754518 Feb 2020
30 Day-0.9%0.759826 Jan 2020
3 Month0%0.752727 Nov 2019
1 Year-0.7%0.758425 Feb 2019
5 Year-5.9%0.799826 Feb 2015
10 Year-20.6%0.948127 Feb 2010

*For period to 25-Feb 21UTC when CAD/USD was 0.7530


CAD/GBP – 6 month chart
1 Day-0.5%0.582224 Feb 2020
7 Day-0.2%0.580318 Feb 2020
30 Day-0.4%0.581726 Jan 2020
3 Month-0.5%0.582127 Nov 2019
1 Year+0.3%0.577725 Feb 2019
5 Year+11.6%0.519126 Feb 2015
10 Year-7%0.622927 Feb 2010

*For period to 25-Feb 21UTC when CAD/GBP was 0.5794


CAD/EUR – 6 month chart
1 Day-0.2%0.693624 Feb 2020
7 Day-0.9%0.698818 Feb 2020
30 Day+0.4%0.689226 Jan 2020
3 Month+1.2%0.683927 Nov 2019
1 Year+3.7%0.667325 Feb 2019
5 Year-3.1%0.714426 Feb 2015
10 Year-0.7%0.697427 Feb 2010

*For period to 25-Feb 21UTC when CAD/EUR was 0.6922


CAD/INR – 6 month chart
1 Day-0.2%54.215124 Feb 2020
7 Day+0.2%54.008118 Feb 2020
30 Day-0.1%54.191726 Jan 2020
3 Month+0.9%53.620427 Nov 2019
1 Year+0.8%53.721625 Feb 2019
5 Year+9.5%49.418726 Feb 2015
10 Year+23.9%43.669027 Feb 2010

*For period to 25-Feb 21UTC when CAD/INR was 54.1263

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

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