The USD-CAD exchange rate closed at 0.9924 on Friday; the pound Canadian dollar exchange rate closed at 1.5738.
UniCredit bank give their verdict on the outlook for the US dollar against the Canadian dollar and the other two commodity currencies - the Australian dollar (Currency:CAD) and New Zealand dollar (Currency:NZD). UniCredit say:
"Two opposing forces vs. only one supportive factor are currently driving the three commodity currencies.
"While rising oil prices are offering some help, keeping especially USD-CAD below parity, USD strength remains the first drag. On the other hand, 'Chinese shadows', i.e. less exuberant growth, declining inflation and a trade balance back into deficit, clearly stand for
the second obstacle.
"In any case, we still see the current AUD-USD and NZD-USD retreat below 1.05 and 0.82, respectively, as a favorable starting point to return long in anticipation of our medium-term targets (1.10 and 0.88). In addition, we also favor going long AUD-JPY and NZD-JPY, as these two units have failed so far to exploit the current yen depreciation."
That said, it is worth noting UniCredit and Deutsche Bank forecast weakness for the US dollar next week, this clouds the picture.
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