![]() Used as an effective barometer to assess U.S. The greenback surged to a 20-year high in September as it printed 114.10 on the ICE Dollar Index (DXY). ![]() dollar strength has been pervasive throughout 2022. Via Wise website US Dollar Performance and Drivers in 2022 The following review examines factors that have influenced this currency pair and provides some CAD to USD forecasts. It is likely this, in addition to the current economic climate, will propel further Canadian dollar weakness. dollar a prime choice for investors seeking safety. Its destination as a safe haven amid heightened geopolitical risk and economic adversity has made the U.S. In comparison, macroeconomic headwinds have caused the greenback to roar in value against the Canadian dollar-in addition to most of its competitor currencies. Furthermore, the Canadian dollar’s decoupling from oil this year has also meant its weakness has not been mitigated through increasing oil prices as effectively as in previous cycles. However, six rate hikes from the Bank of Canada (BOC) in 2022 have not been enough to deter weakness against the U.S. dollar strength as a dominant 2022 theme. 17, surging inflation, a hawkish Federal Reserve (Fed) and poor economic growth have contributed to U.S. dollar in October, a level unseen since May 2020.ĭespite the Canadian dollar’s recent 1.87% bounce to the upside against the U.S. Nicknamed the “The loonie,” the beleaguered currency spiked to print its yearly low of 1.388 against the U.S. This reflects a volatile outlook for the petrodollar. Following a broad-based downward trend since April, the Canadian dollar (CAD) has lost 5.76% of its value against the U.S.
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