USDCAD Forecast and News

In the USDCAD Forecast Price 2022, our dedicated contributors expect a bearish trend during the year. By the end of the year 2022, the average outlook for the pair is 1.2393. Read more details about the forecast.

From Jan 2021 to Dec 2021, the maximum level for the USDCAD (Canadian dollar US dollar) was 1.2942 (on 20/12/21), and the minimum, 1.2034 (on 06/02/21).

Of the three main fundamental factors for the USD/CAD in 2022, the comparative Canadian and US economies, central bank interest rates and the price of oil, the first is a wash, the second tilts to the US and the third is unlikely to rise sufficiently to give the loonie a long-term advantage. The US and Canadian economies are likely to grow at similar rates next year. Central bank rate speculation depends on the course of inflation. If the American inflation reports leading to the March FOMC meeting show high or accelerating price increases, a March fed funds hike will rise to a near certainty.

• Fed, the Federal Reserve of the United States whose president is Jerome Powell. The Fed controls the monetary policy, through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.

In terms of economic data, we should highlight the Trade Account Balance, a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. It is an event that generates some volatility for the USDCAD. If a steady demand in exchange for CAD exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the CAD.

Inflation is another economic value that is important for this pair. It is measured among others by the CPI (Core Price Index) and the PPI (Production Price Index). They are key indicators to measure inflation and changes in purchasing trends.