Analysts predict temporary dip for Canadian dollar before interest rate hikes spark recovery
Analysts expect the Canadian dollar to weaken slightly before rebounding later this year. Potential rate hikes and US dollar pressure should drive long-term gains.
Insights:
A Reuters poll of 35 foreign-exchange analysts released on February 5, 2026, predicts that the currency of Canada 
CA will weaken by 0.9% to approximately 1.38 USD/CAD in three months before strengthening to about 1.35 in 12 months. The survey, conducted from January 30 to February 4, found that median forecasts remain unchanged from the previous month, reflecting a persistent market view. This outlook is primarily tied to the anticipated timing of potential Bank of Canada tightening and broad-based selling of the United States 
US dollar.
CA will weaken by 0.9% to approximately 1.38 USD/CAD in three months before strengthening to about 1.35 in 12 months. The survey, conducted from January 30 to February 4, found that median forecasts remain unchanged from the previous month, reflecting a persistent market view. This outlook is primarily tied to the anticipated timing of potential Bank of Canada tightening and broad-based selling of the United States US dollar.
