Fundamental Outlook for Canadian Dollar: Bearish
- Canadian Dollar Loses Luster Despite Jump in Commodities – Why?
- US Dollar/Canadian Dollar Technical Outlook Points Towards 1.3025
- View our monthly US Dollar – Canadian Dollar Exchange Rate Forecast
Subsequent forecasts for the future of the US Dollar/Canadian Dollar exchange rate will largely depend on outlook for commodity prices and global equity indices. Given that oil and other key commodity costs have been trading off of broader financial market risk sentiment, it is perhaps unsurprising to note that the Loonie has remained especially sensitive to equity market declines. As such, we will watch for stock market reactions to key US economic event risk in the week ahead. Wednesday will bring a combination of US housing, inflation, and Federal Reserve Open Market meeting minutes—likely to force noteworthy reactions out of US and Canadian equity indices. Forex traders will likewise watch for noteworthy developments out of the weekend’s G20 summit and subsequent reactions out of global risky asset classes.
It remains especially difficult to predict USD/CAD price action through shorter time frames, but overall momentum continues to support US Dollar Strength and Canadian Dollar weakness through longer-term trade. - DR
Visit our recently updated USD/CAD Currency Room for more resources dedicated to the Canadian Dollar.
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