The Canadian dollar traded around 1.267 at the beginning of December, getting closer to a 2-week low of 1.265 hit on November 25th, amid a sharp rebound in oil prices and an increase in risk appetite as the new Covid-19 variant, Omicron, should have a lower impact on the global economy once its symptoms seem mostly mild. Also, traders will be watching the BoC meeting on December 8th, looking for some clues for the next steps of the monetary authority after better-than-expected employment and GDP data. The jobs report showed that the economy added a net 153.7 thousand jobs in November, while third-quarter GDP figures showed that the economy grew at an annualized rate of 5.5%. Both results geared up investors to bet that the BoC might hike rates before the FED. Lastly, the oil prices – Canada’s major export – rebounded to over $71 a barrel, after plunging to below $66.
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 December of 2021.
The Canadian Dollar is expected to trade at 1.29 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.31 in 12 months time.