20 December 2022 | Other

Canadian dollar rises, investors expect China to reopen

The Canadian dollar strengthened against the U.S. currency. Investors expect that the easing of COVID restrictions in China will increase demand for oil, which is one of the main exports of Canada.

According to Adam Button, a chief currency analyst at ForexLive, markets are starting to take China's reopening more seriously. Button also noted that he does not expect the coming months to be easy. However, in his opinion, they will be followed by an increase in demand for oil, which may contribute to the strengthening of the Canadian currency.

As the world's leading importer of crude oil, China has faced an increase in the number of COVID-19 cases since the easing of mobility restrictions. Nevertheless, the government has announced its intention to strengthen its economic aid in the coming year. 

At the same time, according to the U.S. Commodity Futures Trading Commission, speculators raised their bets against the Canadian currency to the highest level since October 2021. The number of net short positions increased from 22,090 to 27,248 contracts.

According to Button, Canada's housing market could pose a great danger in 2023. He also added that hawkish statements from the world's leading regulators suggest that the rate hike cycle will be longer than expected.

Company MarketCheese
Period: 02.04.2025 Expectation: 946 pips
Buying NVIDIA stock on optimistic outlook for company
Today at 06:07 AM 3
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
2nd in the segment "Metals"
Period: 06.04.2025 Expectation: 8450 pips
Technical reversal suggests buying TSLA with target of 362.20
Yesterday at 11:10 AM 47
Alexandra_Belova
Alexandra_Belova

Listed among the best MarketCheese authors
1st in the segment "Crypto"
2nd in the segments "Currencies" and "Oil and gas"
Brent sell
Period: 30.04.2025 Expectation: 300 pips
Selling Brent to $69 per barrel
Yesterday at 10:19 AM 17
Period: 01.04.2025 Expectation: 5000 pips
Reaching 91,500 will confirm trend of Bitcoin recovery
Yesterday at 08:54 AM 25
Period: 31.03.2025 Expectation: 475 pips
Buying AUDUSD amid correction with target at 0.633
Yesterday at 06:58 AM 35
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
2nd in the segment "Metals"
Period: 31.03.2025 Expectation: 1000 pips
US stock market outflow limits S&P 500 rebound
24 March 2025 58
AntonVolkov
AntonVolkov

Listed among the best MarketCheese authors
1st in the segment "Currencies"
3rd in the segment "Metals"
Go to forecasts