The Canadian dollar strengthened towards $1.291, the highest in over a week and after crossing the $1.3 mark on June 17th, supported by a rebound in crude oil prices coupled with rate-hike bets from the country’s central bank, temporarily turning attention away from the recessionary fears. Crude oil, one of Canada’s major exports, bounced back to $108 after losing in the previous two sessions as fears of tight supplies overshadowed concerns of lower fuel demand spurred by aggressive monetary tightening by major global central banks. In Canada, inflation surged to a fresh higher than expected 39-year high of 7.7% in May from 6.8% in April, way above the central bank’s target of 2%. Markets now expect an at least 75 bps rate-hike from BoC in July, with strong labour market and retail sales data further hardening the prospects of aggressive monetary tightening. .
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 June of 2022.
The Canadian Dollar is expected to trade at 1.32 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.37 in 12 months time.