Author: Robert Jessi

USD to CAD traded a little below 1.3700 yesterday and a move lower to the 1.3660 area today suggest “more of the same is likely in the near-term.” USD/CAD has not experienced much movement around the 1.37 area. according to economists at Scotiabank Canada, the Loonie is expected to have a more positive seasonal pattern in the second quarter. currently, USD/CAD is in a steady sideways range lacking variation lately, with prices trending downwards from the mid-march highs near 1.3850. moreover, the rejection of near 1.3700 yesterday and a drop to the 1.3660 area today suggest that this pattern is…

USD to CAD exchange rate continues to strengthen on market attitude becoming increasingly pessimistic after the collapse of Silicon Valley Bank and another regional institution, and concerns over the fate of Credit Suisse , as investors seeking safety bolstered the US Dollar. Risk aversion is typically tied inversely to the Canadian dollars value. All the while, economic data from the United States has seen consumer spending drop 0.4% month over month vs. analyst predictions of a 0.3% contraction. January’s 3.2% increase and February’s data reveal that consumers are spending at a decreased rate. US Bureau of Labor Statistics has shown…

The trade relationship between Canada and the United States is one of the most significant in the world and has an enormous effect on the USD to CAD exchange rate, with both countries being each other’s largest trading partners. The trade balance between the two nations has been a topic of much discussion and debate over the years. In general, the United States has a trade surplus with Canada, meaning that it exports more goods and services to Canada than it imports from Canada, this is one of the reasons that the USD to CAD rate is above 1, making…

Inflation is an economic concept that refers to the rate at which the general level of prices for goods and services is increasing over time. In Canada, inflation is measured by the Consumer Price Index (CPI), which tracks the prices of a basket of goods and services commonly purchased by households. It also may have an effect on the USD to CAD exchange rates, and other key CAD rates, adjusting the cost to import goods and services, and for Canadian exports to be competitive. In recent years, Canada has experienced moderate inflation rates. In 2021, the average annual inflation rate…

The USD/CAD exchange rate is the value of one US dollar in Canadian dollars. It is an important economic indicator that reflects the strength of the US and Canadian economies and their trading relationship. The exchange rate is influenced by a number of factors, including interest rates, trade balances, political events, and global economic conditions. When the interest rates in the United States are higher than those in Canada, for example, the exchange rate tends to favor the US dollar. This is because investors are attracted to higher returns and will move their money to countries with higher interest rates.…

The Canadian dollar is expected to recover relative to the US Dollar later on in the year as the world’s economic outlook increasingly appears favorable for the more commodity-correlated currencies and many professionals assume monetary authorities will return to lowering interest rates again by 2024, according to a Reuters poll released this past Wednesday. Although, over the next 12 weeks, CAD is likely not to move over dramatically at 1.34 per U.S. dollar, or 74.63 U.S. cents, according to the median forecast from monetary analysts, however, this was above the January’s forecast of 1.35. CAD was then expected to increase…

In an effort to significantly increase transparency in regards to decision making, during a time of waning confidence in Canadian institutions, the Bank of Canada has released an internal minutes report giving rare insight into decision making. What’s behind their rate hike decision? It seems that the Bank of Canada hiked rates last month rather than leaving them unchanged because of labor market tightness and much stronger than had been previously expected growth, according to minutes from the policy setting meeting which was released on Wednesday. After letting inflation soar up to 8%, regaining the public confidence seems to be…