Canadian Dollar Forecasts Turn Bullish as Risks Ease
Analysts expect the Canadian dollar to gain 1.5% over the next year as geopolitical tensions in the Middle East subside and oil prices provide a tailwind. While the loonie may remain range-bound in the near term, easing U.S. dollar demand and trade stability support a long-term uptrend.
Analysts expect Canada's dollar to rise 1.5% to 1.3433 against the greenback over the next 12 months. This forecast follows a Reuters poll of 27 analysts conducted between May 1 and May 6. Easing geopolitical tensions and high energy prices provide a tailwind for the loonie as trade negotiations approach.
USD/CAD is projected to hit 1.3667 in three months, according to a median forecast of 27 analysts. This represents a 0.3% decline from current levels. However, the 12-month outlook improved from 1.3500 in the previous survey.
