USD to CAD Forecast & Long-Term Predictions

  • The CAD to the USD rate has traded within a narrow range of 0.70-0.76 since September 2022. The CAD Dollar Forecast for the near future promises a continuation of this trend.
  • The moderate volatility of the CAD is due to 2 factors. The first is the close link between the economies of the two countries. The second is the similarity in the monetary policies of the Bank of Canada and the Fed.
  • Over the past 12 months, the CAD (Canadian dollar) exchange rate has depreciated by 3 percent.
Month
1 year
3 years

Key Findings

The CAD to American dollar forecast (USD) for the coming weeks is expected to remain negative. The CAD is likely to depreciate. The reason for these changes is a possible divergence with the Fed's policy, as well as a slowdown in the economy. The existing analyst rating on the CAD dollars is Sell.

Price Today

$0.733

Price at Q1 of 2024

$0.738

Price for next year 2025

$1.363

Long-term price 2025-2030

$1.363

Canadian Dollar Forecast for Today

Growth

On 13-07-2024, the CAD to USD forecast for the day is positive. There is optimism in the market. Technical indicators are bullish for the CAD dollars. There is a high probability of currency appreciation.

Minimum forecast cost

0.71 USD

Maximum Forecast Value

0.75 USD

% value change

0.15%

Canadian Dollar Forecast Technical Analysis

Daily fluctuations in the value of Canadian dollar (CAD) against the American dollars (USD) are insignificant. For example, on Friday, June 14, 2024, the local high for CAD was only 0.378% higher than the local low. The weak volatility makes this currency pair not the most suitable for trading.

The CAD dollar Forecast based on technical indicators on the older timeframes is negative:

  1. Moving averages give a strong sell signal;
  2. RSI indicator does not indicate that the asset is oversold;
  3. The chart still has the potential to fall to the lower border of the Bollinger Bands.

The CAD Dollar Forecast is bullish on the shorter time frames. On the hourly and 30 minutes charts, the moving averages are giving buy signals. The Williams and Bull/Bear Power(13) indicators also point to the possibility of CAD dollars appreciation.

By all indications, the movement within the narrow corridor will continue. In case of a bullish trend, the 0.76923 USD level will be a strong resistance.

What will CAD be worth in 5 years?

There are several variations of the CAD to USD forecast for the coming 5 years. But they are all bearish. No financial service has a dollar forecast for the CAD (Canadian dollar) to strengthen against the USD dollars.

The main arguments of the authors of the bearish CAD Dollar Forecast:

Analysts are not optimistic about the CAD dollars even in the face of rising oil demand.

Another important factor is that the CAD to USD forecast is updated by extrapolating past data. And since May 2021, the value of the CAD dollars has been in a downtrend.

At the same time, the Canadian dollar forecast (CAD) was more optimistic a year ago. Experts pointed to US inflation data. Their high rates weaken the USD dollars.

Some authors argue that the CAD is currently undervalued. But even they do not offer a bullish CAD to USD forecast.

Will CAD get stronger against USD in 2024?

In June 2024, the National Bank of Canada published a Canadian Dollar forecast (CAD). According to the Canadian dollar forecast (CAD), it is expected to weaken against the US dollars (USDs) in the second half of the year. At the same time, the volatility of the CAD dollars exchange rate may increase. The reason for this is the need to lower interest rates due to the slowdown in GDP growth.

Other analysts are not optimistic about the CAD dollars exchange rate either. CAD to USD Forecast for the End of 2024:

Please refer to the table below for a detailed CAD to USD forecast for the exchange rate by month.

Month Minimum expected exchange rate Maximum expected exchange rate Change of average exchange rate, %
September 0.726 USD 0.732 USD -0.53
October 0.718 USD 0.726 USD -0.97
November 0.713 USD 0.717 USD -0.98
December 0.711 USD 0.714 USD -0.35

Source https://walletinvestor.com/forex-forecast/cad-usd-prediction

What is the CAD to USD forecast for 2025?

Many analysts have a negative Canadian Dollar forecast (CAD dollars) in 2025. The main reason for the Canadian dollars weakness is the likelihood that the Bank of Canada will do a rate cut. Another negative factor for the CAD dollars is lagging economic indicators.

Month Minimum expected exchange rate Maximum expected exchange rate Change of average exchange rate, %
January 0.7065 USD 0.714 USD -3.19
February 0.7054 USD 0.7077 USD -0.52
March 0.7021 USD 0.7060 USD -0.36
April 0.7063 USD 0.712 USD +0.72
May 0.7095 USD 0.712 USD +0.23
June 0.7084 USD 0.712 USD -0.08
July 0.7081 USD 0.715 USD +0.19
August 0.7065 USD 0.714 USD -0.18
September 0.7042 USD 0.7098 USD -0.46
October 0.695 USD 0.7041 USD -1.06
November 0.691 USD 0.695 USD -0.95
December 0.689 USD 0.692 USD -0.36

Source https://walletinvestor.com/forex-forecast/cad-usd-prediction

CAD Price Prediction 2026

In June 2024, analysts say the CAD dollars will continue to weaken in 2026. The CAD dollars exchange rate will move down from the corridor it was in in 2022-2024. At the same time, the CAD to USD forecast varies widely depending on the source.

End of 2026 CAD (Canadian dollars) to USD rate:

The experts at BeatMarket have a dollar forecast that the optimistic version of the Canadian Dollar forecast (CAD dollars) is more likely. In our view, it is highly unlikely that the exchange rate will fall below 65 cents.

Month Minimum expected exchange rate Maximum expected exchange rate Change of average exchange rate, %
January 0.684 USD 0.692 USD -6.53
February 0.683 USD 0.685 USD -0.58
March 0.680 USD 0.684 USD -0.29
April 0.684 USD 0.690 USD +0.73
May 0.687 USD 0.689 USD +0.15
June 0.686 USD 0.690 USD +0
July 0.686 USD 0.693 USD +0.22
August 0.684 USD 0.692 USD -0.22
September 0.682 USD 0.688 USD -0.44
October 0.673 USD 0.682 USD -1.11
November 0.669 USD 0.673 USD -0.97
December 0.667 USD 0.669 USD -0.45

Source https://walletinvestor.com/forex-forecast/cad-usd-prediction

Canadian Dollar (CAD) Forecast 2027

The CAD to USD forecast promises a slight weakening of the CAD dollars in 2027. Compared to 2026, the Canadian dollars (CAD dollars) will depreciate by 2-4 cents.

Some platforms are predicting a slight increase in the CAD dollars exchange rate. The reason for this is the forecast that the Fed and the Bank of Canada will have synchronized their interest rate movements by this time. This will reduce the volatility of the CAD dollars and make it a more attractive asset.

Canadian Dollar Forecast (CAD dollars) at the End of 2027:

Month Minimum expected exchange rate Maximum expected exchange rate Change of average exchange rate, %
January 0.662 USD 0.669 USD -10.13
February 0.661 USD 0.663 USD -0.53
March 0.658 USD 0.661 USD -0.38
April 0.662 USD 0.667 USD +0.75
May 0.665 USD 0.667 USD +0.23
June 0.664 USD 0.667 USD -0.08
July 0.664 USD 0.671 USD +0.3
August 0.662 USD 0.670 USD -0.23
September 0.660 USD 0.665 USD -0.53
October 0.651 USD 0.659 USD -1.15
November 0.647 USD 0.651 USD -0.92
December 0.645 USD 0.647 USD -0.46

Source https://walletinvestor.com/forex-forecast/cad-usd-prediction

What is the price forecast for the Canadian Dollar in 2028?

Both bearish and bullish scenarios are included in the CAD to USD forecast for 2028:

The main argument of the bulls is the forecast of the decline of both dollars against other ones. The reason for this is the size of the US national debt. Another positive factor for the CAD dollars is the forecast that the cost of a barrel of oil will rise to 110 dollars (USD) by 2027.

Bears are pessimistic about the Canadian dollars (CAD) and oil costs. BeatMarket analysts also expect the CAD exchange rate to fall. Our CAD to USD forecast (Canadian dollars to American dollars) is 62 cents by the end of 2028.

Month Minimum expected exchange rate Maximum expected exchange rate Change of average exchange rate, %
January 0.640 USD 0.647 USD -13.89
February 0.639 USD 0.641 USD -0.55
March 0.635 USD 0.639 USD -0.47
April 0.639 USD 0.645 USD +0.78
May 0.643 USD 0.645 USD +0.31
June 0.641 USD 0.645 USD -0.16
July 0.641 USD 0.649 USD +0.31
August 0.640 USD 0.647 USD -0.23
September 0.637 USD 0.643 USD -0.55
October 0.629 USD 0.637 USD -1.11
November 0.624 USD 0.629 USD -1.04
December 0.622 USD 0.625 USD -0.48

Source https://walletinvestor.com/forex-forecast/cad-usd-prediction

Long-Term Canadian Dollar (CAD) Forecast 2030 to 2050

The long-term Canadian dollar forecast (CAD) to USD rates (American dollars) is broadly neutral. Over the following 10 years, the CAD is expected to gradually weaken. The CAD is expected to depreciate against the USD (dollars).

But then the trend will change. Between 2040 and 2050, analysts forecast the exchange rate to recover. The Canadian dollar (CAD) has the opportunity to grow to and beyond existing levels.

Key Factors Affecting the Value of the CAD Over the Long Term:

  1. Canada's economic productivity and GDP growth relative to other countries.
  2. The Bank of Canada's monetary policy.
  3. Geopolitical situation and trade relations between countries.
  4. Inflation and interest rate.
  5. The state of the country's trade balance.

The CAD will also be affected by the changing structure of the Canadian economy. If the Canadian Dollar (CAD) becomes less dependent on oil, this will be a positive factor.

What is the 10-year return on the Canadian Dollar?

According to Financialpost, the value of the CAD could fall to 50 cents in 10 years. This CAD to USD forecast is ground on 2 factors. The first is the belief in the strength of the USDs. Analysts forecast that the cycle of interest rate cuts will have a positive impact on the US economy. This will lead to an increase in the USD’s exchange rate against other currencies.

The second reason why the CAD to USD forecast is negative is the belief in green energy. There is an opinion that the development of technologies will lead to a decrease in the demand for oil. The effect of their implementation will be felt after 2030. This will have a negative impact on the cost of a barrel. This, in turn, will lead to a weakening of the CAD.

What will the Canadian Dollar (CAD) be worth in 2030?

Most analysts have a negative CAD to USD forecast in 2030. According to the most popular opinion, the CAD (Canadian Dollars) will decline smoothly until the end of the decade. The dollar forecast of the CAD (Canadian dollars) value is 0.55-0.65 USD dollars.

However, some analysts are offering a bullish scenario for the CAD (Canadian Dollars). Their Canadian Dollar forecast (CAD) calls for an appreciation from the current exchange rate.

The most optimistic CAD to USD forecast for 2030 - 0.83 USD dollars. This is the opinion of experts who believe in the development of Canadian industry. They forecast that the country has an opportunity to significantly increase the investing attractiveness of the economy. This will lead to a strengthening of the Canadian dollars (CAD).

Canadian Dollar Forecast 2040

The CAD (Canadian dollars) is not a very popular currency. As a result, there is no authoritative long-term CAD to USD forecast for the exchange rate. Most available sources tend to believe that after 15 years, the exchange rate will swing back in favor of the CAD. And USDs (American dollars) will become cheaper.

The Canadian dollar forecast (CAD) to the USD in 2040 is 70-85 cents. The actual value of the CAD will depend on the pace of economic development in both countries over the following 15 years. Another important factor for the CAD is the attractiveness of Canada as an investing destination for foreign capital.

Canadian Dollar Outlook 2050

The 2050 CAD to USD forecast promises to maintain or strengthen the position of the CAD. The dollar forecast of the CAD exchange rate is 70-90 cents.

This Canadian Dollar forecast (CAD) is grounded on the assumption that the economies of the two countries will develop at roughly the same pace. However, significant divergences in monetary policy can affect the USD to CAD exchange rate. Another unpredictable factor in such a timeframe is in the shift in the countries' trade balance.

Canadian Dollar Basics

Tied with the U.S. dollars (USDs), Canadian dollars (CAD) ranks 5th in global forex trading volume. CAD (Canadian dollars) accounts for more than 5% of turnover. This allows traders to count on key qualities such as:

  • High CAD (Canadian dollars) liquidity;
  • Small spread when buying CAD (Canadian dollars) for US dollars (USD) and vice versa;
  • Analyst interest and regular publications of CAD to USD forecast for various time periods.

There are several aspects to consider when making a Canadian Dollars forecast (CAD). The strength of the CAD (Canadian dollars) depends on Canada's trade balance. Primarily, it depends on the demand for oil and gasoline. Other commodities also play an important role in the country's trade balance. Their value also affects the CAD (Canadian dollars).

The second important feature of the CAD (Canadian dollars) is the close link between the Canadian and US economies. Therefore, the CAD to USD forecast should also take into account the situation in this country.

Unlike the U.S. dollars (USDs), the Canadian Dollars (CADs) is not a reserve currency. However, Canada has a relatively healthy economy. As a result, analysts often refer to the CAD (Canadian dollars) as a safe haven for investors.

CAD to USD Price History Chart

Key dates

2007 and 2011

These were the most successful years for the CAD. 1 The CAD (Canadian dollars) was worth 1.06 US dollars (USD). The reason for the strengthening of the CAD (Canadian dollars) was the forecast that the Bank of Canada would raise interest rates.

Year 2020

The CAD to US dollars (USDs) exchange rate reached its lowest level since 2005. This was due to pandemic restrictions. Their introduction led to falling oil costs. As a result, the CAD (Canadian dollars) became cheaper.

Year 2024

The CAD has been in a very long sideways trend. This Canadian dollars (CAD) vs. USDs exchange rate is due to the long overlap between the monetary policies of Canada and the US.

What Influences Canadian Dollar Price

Corporate Decisions

The CAD quotes are influenced by decisions made by the Bank of Canada, the Government of Canada and the Department of Finance. The main instrument of influence is the interest rate. The U.S. government and the Fed have an indirect influence on the CAD.

Oil and other commodity prices

Canada is a major oil and natural gas producer. The CAD (Canadian dollars) quotes are correlated to the cost of a barrel of oil measured in dollars (USD). The CAD is less affected by the cost of grain, lumber, minerals, etc.

Economic factors

The CAD exchange rate is primarily influenced by the trade balance. Its deviation increases the volatility of CAD USD. Strong demand for exports strengthens the CAD. Another important factor for the CAD is inflation. It is measured by the CPI (Consumer Price Index) and the PPI (Producer Price Index).

Is the Canadian Dollar a good long-term buy?

Short-term

(1-6 month)

In the perspective of up to 10-12 weeks, CAD is not recommended to buy. The CAD dollar forecast against the USD dollars is negative. The American dollars (USD) are gaining strength. Technical indicators show a high probability of a bearish trend for the CAD.

Medium-term

(6-12 month)

Over the coming six months or so, the CAD will decline. The reason for this is the divergence in monetary policy between the Bank of Canada and the Fed. Another reason for the negative Canadian Dollars forecast (CAD) is pessimism about oil costs.

Long-term

(1 year+)

The CAD is an unsuitable asset for a long-term portfolio. The CAD to USD forecast is negative for several years. Analysts forecast that the CAD could lose almost a third of its current value.

FAQ

Should I wait to convert CAD to USD?

In June 2024, the probability of CAD appreciation against the USD dollars is minimal. The decision to convert to the CAD as soon as possible seems prudent. The CAD exchange rate may depreciate.

What are the risks of investing in CAD to USD exchange rate fluctuations?

Investing in exchange rate volatility rather than in the CAD increases risk. Derivatives are typically used for this purpose. And such investing does not allow the trader to wait out the period when the exchange rate moves against his position. Therefore, the probability of real losses is much higher.

How do inflation rates in Canada and the US impact the CAD to USD exchange rate?

When inflation in Canada is higher than in other countries, the volatility of the CAD increases. The level of inflation also affects the Bank of Canada's interest rate. And the difference in interest rate is another factor that regulates the CAD exchange rate.

How do interest rates affect the CAD to USD exchange rate?

A widening gap between Canadian interest rate and U.S. interest rate will cause the CAD (Canadian dollars) exchange rate to fall. Lower interest rate will make the CAD (Canadian dollars) less attractive as an investment.

How reliable are expert predictions for the CAD to USD exchange rate?

The CAD to USD forecast for the coming months is usually reliable. Exception - moments of significant geopolitical or economic turmoil. The long-term USD dollars - Canadian dollar forecast (CAD) is less reliable. The longer the period, the higher the probability of unforeseen factors. They can affect both CAD and USD forecasts (Canadian dollars and American dollars).

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