Forecasts for CAD to ILS
**CAD to ILS Exchange Rate Update**
The exchange rate of the Canadian Dollar (CAD) against the Israeli Shekel (ILS) has recently exhibited volatility influenced by various economic and geopolitical factors. Currently, the CAD to ILS exchange rate stands at 2.5685, which is 1.1% lower than its three-month average of 2.5965. This exchange rate has remained relatively stable, trading within a 7.2% range between 2.5300 and 2.7125.
### Influences on the Canadian Dollar
The CAD is significantly affected by crude oil prices, as Canada is one of the world’s largest oil exporters. Recent trends show oil prices hovering at approximately $73.23 per barrel, which is 9.3% above its three-month average of $67.02. Analysts have noted that the CAD typically strengthens when oil prices rise, benefiting from increased revenues tied to oil exports. However, fluctuations in oil prices can lead to corresponding movements in the value of the CAD.
Additional factors influencing the CAD include the recent political leadership change in Canada and ongoing trade tensions with the United States. In early 2025, Prime Minister Justin Trudeau's resignation raised concerns about the stability of the CAD. Trade relations have also been strained, with the U.S. imposing tariffs on Canadian steel and aluminum, which could limit the potential appreciation of the CAD in the near future.
Moreover, the Bank of Canada (BoC) maintained its policy on interest rates, holding the benchmark rate steady at 2.75%. This decision aims to support the CAD amid economic uncertainties and has resulted in a rallying effect on the currency. Experts assert that the market will remain focused on oil price dynamics and broader economic conditions to gauge the CAD’s future performance.
### Impacts on the Israeli Shekel
In contrast, the Israeli Shekel (ILS) has seen significant pressure due to heightened geopolitical tensions, particularly following the October conflict escalation involving Hamas. The shekel recently fell to its lowest level against the U.S. dollar in nearly eight years. The Bank of Israel's intervention through foreign exchange sales underscores the ongoing efforts to stabilize the economy amid these tumultuous conditions.
Given the turbulent economic landscape in Israel, analysts warn that the ILS may face further downside unless the geopolitical situation improves. Coupled with the U.S. tariffs imposed on Israeli goods, the currency could encounter additional hurdles in regaining strength.
### Outlook
Looking ahead, the CAD’s performance against the ILS will depend heavily on oil market trends, overarching global economic stability, and the developments in U.S.-Canada trade relations. As oil prices are expected to remain volatile, any upward movement could bolster the CAD, while ongoing trade tensions and geopolitical conflicts could weigh on the ILS.
In summary, market participants are advised to monitor these developing factors closely, as they will play crucial roles in determining the CAD to ILS exchange rate moving forward.