USD/CAD to plummet towards 1.20 in 2022 given higher commodity prices – NBF

FXStreet Insights Team FXStreet

The loonie weakened in the third quarter despite fundamentals that remained relatively constructive for the Canadian economy. Looking ahead, economists at the National Bank of Canada expect the USD/CAD pair to edge lower towards the 1.20 level in the next year.

Better days ahead for the loonie

“Given that we do not see a significant drop in energy prices in the coming months, we believe that the CAD should appreciate against the USD.”

“Given the recent performance of Canadian labour markets and the positive outlook for commodity prices and nominal GDP, we continue to expect another round of QE tapering from the Bank of Canada in October.”

“Given our upwardly revised forecast for the price of oil and natural gas, we now see USD/CAD at 1.20 in 2022.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.