The Canadian dollar depreciated past the 1.36 per USD level, reaching a three-month low, as the US dollar maintains its strength following comments from Fed Chair Powell that suggest the potential for additional rate hikes if the US economy remains resilient. At the same time, oil prices retreated from recent highs and Canada posted the largest trade deficit since November 2020, highlighting the extent of net outflows of the domestic currency from the economy, and pressuring the loonie. On the other hand, annual inflation rate in Canada rose more than expected in July and the core rate failed to slow as anticipated, keeping a range of possibilities open for the Bank of Canada, as the bank considers the need for another rate hike in September.
Historically, the Canadian Dollar reached an all time high of 1.62 in January of 2002. Canadian Dollar - data, forecasts, historical chart - was last updated on August of 2023.
The Canadian Dollar is expected to trade at 1.38 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.43 in 12 months time.