USDCAD Forecast and News

In the USDCAD Forecast Price 2021, our dedicated contributors expect a bearish trend during the year. By the end of the year 2021, the average outlook for the pair is 1.2392. Read more details about the forecast.

From Jan 2020 to Dec 2020, the maximum level for the USDCAD (Canadian dollar US dollar) was 1.4513 (on 19/03/20), and the minimum, 1.2708 (on 15/12/20).

The recurrence of the pandemic and re-instituted defensive measures in many countries will continue to cripple most economies through the first quarter and with diminishing severity into the second, delaying recovery even as the vaccines hopefully ensure it. Western Europe and the US can probably expect a drop in growth in the first quarter as the renewed closures hamstring economic activity. But once the recovery is underway Canada's large resource and oil-export industries will profit as commodity and oil prices continue higher returning to historical norms for a global expansion.

• 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.