Major central banks have increased interest rates in trying to keep up with the Fed and beat inflation. In addition, there are multiple factors increasing the pressure on the US dollar. Among the options, experts name reaching-its-high Gold, other currencies, and even stocks of tech companies. And if the cycle is close to the end, then there are more and more alternative assets to the USD. But most analysts are sure – it was the very last hike. The Fed continues to increase the key rate and the last hike happened at the beginning of May.įederal Reserve Chairman Jerome Powell claimed that the regulator isn’t going to decrease the rate and that the decision about the pause in increases will be made at the June session. As we realize now, market participants were wrong. It was the moment when the USD decreased on the expectations that the Fed would stop hiking the interest rate. You may have noticed we limited both charts to October 2022. One of them is the economic calendar thanks to which it’s possible to find all the major economic events in one single place. If you want to predict such market movements, you can use different trading tools. This number is smaller than in the previous picture but still impressive. The chart below reminds us that the difference between the US and the Canadian dollars for the same period reached about 8%. We see how powerfully the USD grew to the major currencies.Īfter that, we allocate the USD/CAD pair. Here is the chart with the US dollar index. Let’s try to find out how much the Canadian dollar might increase to the US dollar and why it may happen.įirstly, we can recall what was going on with the USD for most of 2022. Many analysts believe that the USD will weaken to the basket of major currencies, including CAD. In spring 2023, there are few traces of the former USD confidence. The US dollar was the ultimate king of the currency party in 2022 but everything passes sooner or later.
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