CAD USD Exchange US Dollar Forecast – Foreign Currency Exchange Rates

CAD USD Exchange US Dollar Forecast – Foreign Currency Exchange Rates

USD CAD Exchange Rate Predictions

Forex experts predicted the US dollar would trend lower against global currencies however that doesn’t seem to be happening. And the Canadian dollar has fallen below 78 cent level, far from what some had forecast.

The forecast that’s making forex traders happy is a USD trading at $1.43 CAD. After today’s Canadian GDP report, the CAD is expected to trend downard.

Check out US dollar exchange rate predictions

While the lower US dollar is extremely good for US manufacturing, jobs and exports, it may also have some interesting effects on the US housing market. With shale oil production growing, corporate money being repatriated in the US, and with US job growth so strong, interest rates are rising and that will driveup the USD.  Forex speculators will be enjoying the volatility.

Live Forex Rates

The forecast for the US Dollar vs Canadian Dollar is creating sell orders on the loonie. The Canadian dollar outlook is hampered by western oil transport issues, high Canadian taxes, and the fear the NAFTA agreement will be cancelled. The potential for the Canadian dollar to fall is high.





The US will likely not experience a housing market bubble 2018. and stock markets are climbming.

If NAFTA is fixed, or a new trade agreement with the US is reached, then investors will resume their interest in Canadian business. However, foreign direct investment has been at record lows for Canada and there’s not much to suggest that will change. Currently, the NAFTA agreement is in peril, which could send sell signals for the CAD.

Will the CAD or USD and other currencies be upset by the arrival of Bitcoin? Cryptocurrency and Blockchain technology is definitely going to disrupt all the markets including real estate . It’s something you should be learning.



Economic Weakness & Government Dampening Measures

The Canadian ecocnomic outlook was positive at 2.2%, but it’s not enough to stop the loonie from steep losses. Ontario’s economy is cooling fast and oil prices have stagnated in th low 60’s range.  With little foreign investment, there’s nothing to drive a demand for loonies.

The housing market was supporting the economy yet it has fallen into what some suggest might be a Toronto housing crash in 2018. and perhaps spreading to Montreal and Vancouver.  Rising interest rates, high Canadian consumer debt and a strong US dollar all point to a lower CAD rate.

There is some hope that with this recent disruption, the government will be forced to reduce controls on housing and begin enabling construction of new developments.

US property investors might want to search for homes for sale in 2018 as capital gains may be strong by June of this year. If US investors want to see higher returns on Canadian sales revenue, the auto parts, lumber, aerospece, oil and gas, vacation rental properties sectors might offer a good return, just for 2018.




Are you a Canadian realtor or US realtor looking to take advantage of opportunities in Canada? There are excellent commissions to be earned in promoting Canadian investment property. Land is and will be, a bargain for Americans in 2018.  Check out the buyers guide on how to buy Canadian property.

When buying Canadian property, ensure you use a forex broker to get better rates. Have a look at current foreign exchange rates for the USD, CAD, Euro, Yen, Yuan, BPD, and Peso.  Don’t just accept bank exchange rates if they’re skimming up to 9% on the conversion. Shop around and keep an eye open for forex companies with better conversion rates.

It’s unlikely, that Asian buyers will continue investing as they have. The housing landscape is changing in Canada. Oddly, housing is one sector the Canadian government is relying upon to generate tax revenue and stimulate its economy. US investment in the Canadian housing market could keep it afloat as well as avert potential housing market crashes.




In this post, we explore the forecast outlook for the CAD vs USD, the macroeconomic and business factors drive it, and what opportunities American’s can enjoy buying real estate in Canada. The forecast for the US housing market is rosy, but the potential ROI from Canadian real estate is an eye opener in 2018.

Buy American? Wait a Minute, Canada is Really Cheap right now!

 

One obvious opportunity is the increasing attractiveness and affordability of Canadian real estate for Americans. The rising economic power of US investors means there are a huge pool of buyers with money to spend on homes, condos and land. Sellers will have to compete to be heard in the clamor for American buyers, but a good measure of buyers will be from the US in 2018.

By June 2018, US property buyers may enjoy a 50% premium on their money based on a falling loonie and rising real estate values which have recently plummeted. There’s no market crash here, but prices have taken a big downtown in Toronto and Vancouver.

Is the US Dollar Rising Against Most Other Currencies?

This chart from fred.stlouisfed.org shows the US dollar was rising against most major currencies however that is now reversing. The exchange rate with the loonie is pronounced with it chasing equilibrium. It wasn’t long ago that 1 USD equalled 1 CAD.  Forex brokers and FX traders will be selling their buying Canadian dollars in anticipation of the rise.

Screen Capture courtesy of fred.stlouisfed.org

Longforecast.com is offering its prediction of a more moderate yet lasting fall for the loonie. This chart shows the US dollar will depreciate by 7% in the next 11 months.

Trading Economics has forecast the USD trading at $1.43 CAD by the end of this year. Whereas this data below forecasts the currency to remain where it is. It was only 1 year ago that it traded at $1.37 CAD. Forex forecast experts and fx brokers might consider the Loonie one of the most volatile currenices of the G7

USD vs CAD Exchange Rate 2018

Month Open Low-High Close Mo,% Total,%
2018
Jan 1.258 1.209-1.258 1.227 -2.5% -2.5%
Feb 1.227 1.205-1.241 1.223 -0.3% -2.8%
Mar 1.223 1.175-1.223 1.193 -2.5% -5.2%
Apr 1.193 1.175-1.211 1.193 0.0% -5.2%
May 1.193 1.193-1.247 1.229 3.0% -2.3%
Jun 1.229 1.209-1.245 1.227 -0.2% -2.5%
Jul 1.227 1.209-1.245 1.227 0.0% -2.5%
Aug 1.227 1.172-1.227 1.190 -3.0% -5.4%
Sep 1.190 1.137-1.190 1.154 -3.0% -8.3%
Oct 1.154 1.124-1.158 1.141 -1.1% -9.3%
Nov 1.141 1.141-1.188 1.170 2.5% -7.0%
Dec 1.170 1.153-1.189 1.171 0.1% -6.9%

This is one of the windows of opportunity to sell US dollars and buy cheap loonies. If Oil prices continue rising as they have been, the CAD will rise strongly.  Canadians are listing their properties so they’re desperate right now to sell their homes.

The full impact of President Trump’s policies are difficult to foresee, however many experts believe the signals are clear about the US Dollar forecast. It is going to rise against all currencies including the Canadian dollar.

What Macroeconomic factors are driving the USD/CAD Rate?

  1. higher interest rates expected in the US will drive US dollar up
  2. US bonds will become more attractive as will American company stocks
  3. lower interest rates will keep CAD same or will be reduced in order to maintain business competitiveness
  4. oil & gas production rising in US thus raising supply and driving price down which will lower demand for Canadian oil and gas
  5. rising trade barriers and border taxes will reduce Canadian trade advantage thus discouraging multinational corporations who can’t make winfall profits anymore or move their wealth fast to avoid taxes
  6. rising US productivity, jobs, startups, and speculation will pull investment money into the US thus raising demand on US dollar
  7. rising consumer spending power will raise US inflation

Photo courtesy of the TorontoStar

With the lower loonie, the Canadian economy should benefit greatly, yet Justin Trudeau will need to negotiate what access Canadian companies will have to US markets. Trump is already cancelling the TPP and NAFTA agreements.

Canadian companies will only look good on the basis of their cost advantage selling to the US.  If negotiations don’t go favorably for Canada, we could see a Vancouver and Toronto housing crash.  That’s a long shot, but risk is risk. We won’t see a crash in US housing markets.




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