US Dollar Canadian Dollar Exchange Rate Forecast

Longer-term studies seem to be suggesting that the market is in the process of carving out a major base, with a fresh higher low now sought out by parity ahead of the next major upside extension beyond 1.3000. At this point however, will need to see a break back above 1.0850 to encourage the recovery prospects and accelerate gains. In the interim, any setbacks below parity should be viewed as a formidable opportunity to build on longs, with only a monthly close back below parity giving reason for concern.

The struggles of the U.S. economy has started to weigh on the outlook for Canadian interest rates as the BoC has put the brakes on their tightening policy as they look to assess the impact of weaker demand from its main trading partner on their economy.

Read more about the Canadian dollar…