Market news
11.01.2021, 15:51

USD/CAD to target 1.20 by end-2021 - NBF

FXStreet notes that the Canadian dollar closed 2020 near a three-year high versus the US dollar. Though loonie appreciation has been driven mainly by the widespread weakness of the USD, economists at the National Bank of Canada (NBF) expect the next leg of its appreciation to be fuelled by commodity prices. The USD/CAD target for year-end 2021 is 1.20. 

“Though loonie appreciation in 2020 was driven mainly by USD weakness, we expect the next leg of its strengthening against the greenback to be fuelled by commodity prices and by a potential narrowing of Canada-US interest-rate spreads. Though some pundits have voiced concern about renewed speculator interest in the CAD, we doubt very much that this would cause the Bank of Canada to cut its interest rates.”

“Our model suggests that current fundamentals alone would have CAD trading at less than $1.25 to the USD. In these circumstances, there is no need for the Bank of Canada to lose sleep over the loonie’s recent strength.”

“At this juncture, our forecast for year-end 2021 is $1.20 to the USD, though the line to that target will not be straight.”

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location