The Canadian dollar broke past the 1.28 per USD mark, its highest in two months, lifted by a weaker dollar after a smaller-than-expected US inflation reading reduced bets on an aggressive interest rate hike by the Federal Reserve next month. Domestically, the central bank is expected to continue its tightening cycle with the possibility of more rate hikes until the end of the year. The Bank of Canada surprised markets by increasing its benchmark rate by 100bps in July while signaling further tightening to tame the sky-high inflation. The annual inflation rate broke a fresh 39-year high in June but rose less than market expectations.
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 2022.
The Canadian Dollar is expected to trade at 1.31 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.36 in 12 months time.