USDCAD Forecast and News

In our USDCAD Forecast Price 2020, our dedicated contributors expect a potential bullish trend during the year. By the end of the year 2019, the average outlook for the pair was 1,3102. Read more details about the forecast.

From Jul 2019 to Jan 2020, the maximum level for the USDCAD (Canadian dollar US dollar) was 1.3638 (on 02/01/19), and the minimum, 1.3006 (on 31/12/19).

With the pending trade agreement, the USDCAD direction will be again be determined by the relative strengths of the United States and China economies and the impact on the interest rate policies of the respective central banks.

With the Canadian economy performing well, the BOC governors would need an extraordinary economic reason to re-open the interest rate discussion.

• 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.