US Dollar/Canadian Dollar Exchange Rate Forecast

US Dollar/Canadian Dollar Long Term Technical Forecast

The USDCAD break through its long term trendline strongly indicates that a long term bottom is in place. Former significant highs at 1.1882 and 1.2738 are bullish targets going forward

  US Dollar/Canadian Dollar Fundamental Outlook/Interest Rate Forecast

Interest rate markets predict that the Bank of Canada will cut interest rates by more than the US Federal Reserve will in the coming year-dealing a blow to the Canadian dollar. Yet we see that the difference in rate expectations has actually narrowed substantially through recent trade, and rate forecasts are not nearly as ominous for the Canadian dollar as they once were. In terms of interest rate differentials, traders predict that the US-Canadian yield spread will narrow by 66 basis points-almost exactly half of previous forecasts for a 116 basis point change. Such forecasts give a modestly bullish bias to the USDCAD pair, but other factors may prove of more importance in setting the US Dollar/Canadian dollar exchange rate.

Forex Sentiment and Positioning Outlook for the US Dollar/Canadian Dollar