CAD Markets Update with Chart with Historic Rates . Check CAD Trends over various time periods.
Canadian dollar (CAD) Market Update
The recent forecasts and currency market updates for the CAD suggest a mixed outlook for the Canadian dollar. CIBC Capital Markets has revised their year-end forecast for the USD/CAD exchange rate in 2024 to 1.31, hinting at the potential strength of the US dollar against the Canadian dollar next year. However, they also highlight optimism for the Canadian dollar in 2025, foreseeing a weaker USD against other major currencies.
Scotiabank analysts point out that the Canadian dollar has not met its Q3 2023 forecasts against the USD but believe it is undervalued based on core economic factors. They speculate that the Bank of Canada might raise interest rates before the end of the year, which the market might be underestimating. As a result, they project the USD/CAD rate might approach 1.30 by the end of 2023.
Despite the potential for residual weakness in the CAD, recent strong employment figures in Canada suggest a possible pick-up in economic activity. The market anticipates that the Bank of Canada might tighten its monetary policy considering the undervaluation of the CAD and expectations that the central bank might become less passive in the coming months.
Regarding currency pair movements, the CAD/USD exchange rate is currently at 30-day highs near 0.7359, slightly above its 3-month average, and has traded within a stable range of 0.7204-0.7436. The CAD/EUR rate is 2.0% below its 3-month average at 0.6706, also trading within a stable range of 0.6659-0.7053. The CAD/GBP rate stands at 0.5819, 1.8% below its 3-month average of 0.5924, within a stable range of 0.5788-0.6105. Lastly, the CAD/JPY rate of 109.1 is near its 3-month average, fluctuating within a narrow range of 107.1-110.8.
As Canada is a major oil exporter, CAD can be influenced by oil price movements. Currently, the Brent Crude OIL/USD exchange rate is at 79.98, 8.6% below its 3-month average of 87.46. It has experienced high volatility, ranging from 77.39 to 96.61.
In summary, while some forecasts anticipate relative weakness in the CAD in the near term, there are indications of potential strength in the Canadian dollar against the USD in the medium to long term. The market is closely monitoring the Bank of Canada's potential interest rate decisions and the overall global currency landscape.
Canadian dollar to US dollar - CAD/USD Trend
CAD to USD is at 30-day highs near 0.7381, just 0.7% above its 3-month average of 0.7329, having traded in a very stable 3.2% range from 0.7204 to 0.7436
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