How are CAD/USD forecasts adjusted?

The forecasts are adjusted once a day, considering the change in the previous day's exchange rate. Exchange rates are determined by macroeconomic factors, international trade agreements, and the supply and demand for foreign exchange. The chart shows the historical rates of the CAD/USD pair and the forecast chart for 2023 year.

What is the USD/CAD forecast for 2022?

For its USD/CAD forecast for 2022, TD Economicsestimated the currency pair to trade at 1.27 in the third quarter of this year, dropping 1.24 per dollar in the fourth quarter. USD/CAD was expected to rise to 1.26 in the first quarter 2023, 1.28 in the second quarter, and 1.30 in the third quarter before dropping slightly to 1.29 per dollar.

Why does the USD appreciate compared to the CAD?

On the other hand, when interest rates in the US are higher than those in Canada, the USD typically appreciates relative to the CAD. This is because higher interest rates in the US make the USD more attractive to investors looking to earn higher returns.

Why is the CAD rising?

In the case of Canada, this is related to the price of oil, the country’s main export. When oil prices rise, the CAD often rises; when oil prices fall, the loonie will often decline. The BoC kicked off the most recent rate hiking cycle on 3 March 2022 – ahead of the Fed – raising rates by 0.25% to 0.5%.