Canadian Dollar Price Likely To Go Up In 2023 As Experts Predict Strong Bullish RunJanuary 13, 2023
Canada’s strong trade policy dominates the market today, and the U.S. labor-related data also gives much-needed momentum to the USD.
As the bearish trend further weakens, the Canadian dollar (CAD) emerges stronger in the market. Experts hope the currency will gain further strength in the upcoming days.
As news emerged, Chinese authorities will soon relax their crypto-related policies and lift the lockdown.
This has given fresh hope to China’s industrial sector. As labor will return to factories soon, China’s economic growth is likely to be rapid. If China’s labor returns to its full capacity, demand for Crude oil will also rise.
Talking of the Canadian dollar, the currency has reacted positively to the recent ray of hope regarding China’s economic outlook.
Although crude oil prices have declined in the market, CAD has shown great strength.
The year 2022 and even 2023 has seen the Chinese economy struggling to sustain itself due to the rapid Covid-19 attack. As a result, the over commodities and currencies have struggled to grow sustainably.
This Morning CAD Showed Great Strength
On Wednesday morning, CAD did well against the market bears. Similarly, the USD stood strong against CAD.
Both CAD and USD have stood strong in the market because of Feds minutes, which shows better job creation performance of the officials compared to the past.
Feds minutes have also revealed talks of upcoming recession are baseless as the economy is perfectly positioned for growth.
The demand for labor in the U.S. market will also give rise to the market supply.
Talking of the price of the USD/CAD, the pair was up by 0.64% today, and at the end of the day, the couple was valued 135617.
Talk of FY 20220, the Canadian trade volume figure shows that the overall Canadian market has been in surplus for the entire year.
But currencies have struggled throughout the entire 2022. It shows that currencies are more sensitive to market trends.
The Market Fundamentals Have Predicated Weaker Bears
Talk of 2023, the market has been bullish from day one. The recent technical indicators have also predicted that bears will go down further.
Moreover, CAD/USD is expected to be bullish for both the short and long term. As the strong bulls are expected to dominate the market, this will likely be the catalyst for further CAD strength.
Moreover, experts have also predicted that the upcoming key level of resistance for CAD will be at 1.3600 and 1.3700, respectively.
If the Canadian dollar surpasses these levels of resistance, the key level of support for the currency will be over the 1.3500 level.
Moreover, the market sentiment shows that investors are currently hoping for long-term returns on CAD/USD.
Regarding the percentage, 59% of the traders currently are long-over USD/CAD. The chances are high for CAD/USD to surge in the short and long term.
Forex market experts have also urged that now is the best time for investors to purchase the Canadian dollar as the currency is perfectly positioned for a bullish run.
Compared to 2022, 2023 seems to be the year of massive price increases in various currencies’ values.
Talking of the strong Canadian dollar, the price of the Canadian dollar will become strong by $1.30 in a year.
As Canada is one of the world’s biggest commodity exporters, the recent economic shutdown by China has caused a lot of trouble for Canada’s economy and the price of CAD itself.
But, as of today, when the news has emerged that China will soon remove the lockdowns and labor will return to work is an encouraging sign.
China’s industry will start production again, which will boost Canada’s export. High exports mean high foreign reserves and strong CAD.
Although investors are certain about a better 2023 for the CAD, as far as the price of USD is concerned, experts are skeptical over the price of USD. Investment in CAD looks secure and lucrative investment option.