Canadian Dollar Strength Ahead: Forex Trading Forecast

Loonie rises in FX trading, along with stocks and commodities

The Canadian dollar forex trading forecast calls for increased strength as the economic recovery progresses. Right now, the loonie is getting help in FX trading from the rallying stock markets around the world, as well as the price of oil.

With Canada’s economy dependent on commodities — especially oil — it is no surprise that dollar weakness and commodities strength is driving the loonie higher in FX trading. Bloomberg reports on the help the Canadian dollar is getting for the forex trading forecast:

“It’s all part of the recovery story,” said Stephen Gallo, head of market analysis at Schneider Foreign Exchange in London. “I see the Canadian dollar appreciating pretty sharply in the next year or so. If you do get U.S. dollar weakness, you’re going to get higher commodity prices.”

The loonie is expected to continue in strength as the global economy recovers. And, if we see oil prices make a strong recovery, we might even see the Canadian dollar reach parity once again with the U.S. dollar.