The Canadian dollar firmed below 1.24 per USD in the second half of October, close to levels not seen since early July, as expectations about Bank of Canada’s monetary policy became more hawkish following a near two-decade high inflation rate. Consumer prices rose 4.4% in September, the most since February 2003, led by transportation costs, shelter, and food prices. The current inflationary environment, coupled with employment figures at pre-pandemic levels, adds pressure to the central bank’s plan to keep interest rates near zero until the second half of 2022, while market expectations point to a rate hike in April.
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 October of 2021.
The Canadian Dollar is expected to trade at 1.24 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.27 in 12 months time.