Analysts on the Nationwide Financial institution of Canada level out that regardless of the uncertainty created by the newest COVID variant, they continue to be snug with their present forecast of USD/CAD pair at 1.20 in 2022.
“We nonetheless count on the loonie to understand additional within the coming months. For one, world manufacturing manufacturing continues to develop at a comparatively brisk tempo.”
“Rising commodity costs, a present account surplus, a robust labour market and optimistic rate of interest differentials argue for an appreciation of the Canadian greenback. In accordance with our mannequin, the CAD stays considerably undervalued towards the buck
“Regardless of the uncertainty created by the newest COVID variant, we stay snug with our present forecast of a C$1.20 fee for the US greenback in 2022.”