Those waiting for a stronger Canadian dollar might be in luck for the next year.
A median forecast from a survey of 35 currency analysts at the start of December shows an expected rebound of 1.1% for the CAD compared to November’s forecast, this could strengthen the loonie to a highly anticipated $1.35 per US dollar in the first quarter of 2023.
The Canadian dollar has seen a steady decline since August of this year, losing over 7% of its strength against the USD dollar in the last 5 months.
Despite Canada’s economy growing at an annualized rate of 2.99% in the third quarter, a rate much higher than analysts or the Bank of Canada expected, the loonie reached its weakest level on Friday at $1.3705 per dollar.
However, investors are placing their bets on a stronger Canadian dollar as China eases Covid restrictions, hopefully spurring demand in the commodity currency. As well, with the US Federal Reserve signaling a halt in its tightening of interest rates it should help spur the dollar to a fairer market value.
What does this mean for you? It means cross boarder shopping might be back on the table and it also means that a road trip to Disney might not sting as much as you thought.
Is this earth-shattering movement? No. Could it be beneficial to you as a traveller? Absolutely! We have no way to know with certainty whether or not any of this will come to fruition but it looks like there is a reason for optimism in the forecast for the Canadian dollar.