Several unexpected exogenous events took place which caused the CAD to appreciate in May. Oil prices continued to function as the primary driver in the fluctuation of the USDCAD and will likely remain the case for this fiscal month. Summary Most banks are forecasting a decline in the USD/CAD foreign exchange transitioning into Q3 as […]

April saw a significant appreciation in the U.S. dollar, as USD/CAD rose almost 400 basis points from the first week of April to the start of May. The transition into May was even rockier for CAD as Trump began implementing protectionist policies starting with the tariffs on lumber, resulting in further U.S. dollar strength. Summary […]

CAD experienced elevated volatility in March, increasing significantly into mid-March due to greater certainty of an interest hike. The USD/CAD rebounded immediately following March’s interest hike due to falling consumer and investor confidence. Summary Most banks continue to forecast an increase in the USD/CAD exchange well into Q2 where it is expected to peak. The […]

Summary FX markets have experienced limited volatility following President Trump’s first month in office, in contrast to the previous months where various global events such as Brexit and the US election caused great volatility in the foreign exchange. The majority of Canadian banks continue to forecast an increase in the USD/CAD foreign exchange well into […]

With the first month for the fiscal 2017 year coming to an end, investors are experiencing difficulty anticipating the outlook for the USD since Trump’s inauguration. January experienced various unexpected shocks that had caused large fluctuations to the USD/CAD pairing; with the primary drivers being oil prices, political factors, and anticipation of future policies, both […]

Canadian Dollar Forecast 2017 (January) Many exogenous events impacted the Canadian dollar throughout 2016, leading to large fluctuations in global FX markets. Negotiations at Brexit and future policy from the Trump administration may affect future monetary policy decisions, and resultantly, global exchange rates. Summary Many Canadian banks anticipate the USD/CAD currency outlook to continue to […]

Market Analysis This year, the market had experienced a set of shocks resulting in higher volatility. This includes Brexit, the decision of the United Kingdom to exit the European Union, and most recently, the U.S. presidential election. It is likely that markets will remain volatile moving towards the first months of 2017. The question of […]

Foreign Exchange Outlook November 2016 US Dollar (USD) Earlier this year, The Federal Reserve in the United States had expressed their intent to raise interest rates. If this does happen towards the end of the year, the USD should gain strength as it has not been fully priced in yet. However, the Fed may not […]

October 2016 It is expected that the US Dollar will continue strengthen, as potential interest rate hikes in the US this year and next year have not been fully priced into the market. It is ostensibly unlikely the US Dollar will lose its strength over the long term. The Canadian Dollar (CAD) seemed to gain […]

September 2016 Market Analysis After a slow first half of the year, the economy in the United States seems to be gaining strength. Jobs data in the United States has shown prosperity relative to Canada. The United States Federal Reserve may consider raising interest rates towards the end of the year. Commodity prices have dropped […]