The CAD to TWD exchange rate is currently around 21.58, reflecting stability in recent months within a 5.4% trading range. Recent forecasts have highlighted several factors influencing the Canadian dollar (CAD), including its close ties to oil prices, policies from the Bank of Canada (BoC), and trade dynamics with the U.S. As of now, CAD appears to be under pressure due to a strengthening U.S. dollar linked to the aggressive policies of the Federal Reserve and a cautious approach from the BoC.
Analysts indicate that the CAD's trajectory is closely connected to oil market fluctuations. With oil prices currently trading at $72.53, which is significantly above the 3-month average, the CAD may find support if this upward trend continues. Recent data shows oil prices fluctuating within a highly volatile 31.1% range. As Canada is a major oil exporter, an increase in oil prices traditionally bolsters the CAD.
The political landscape in Canada remains a factor to watch, as the recent change in leadership following Prime Minister Justin Trudeau's resignation has introduced uncertainties. Forecasts suggest that the CAD may struggle to gain momentum due to trade tensions with the U.S., particularly after the imposition of tariffs that triggered retaliations. This backdrop limits the CAD's upside potential, as marked by economist predictions amid these geopolitical challenges.
For the Taiwan dollar (TWD), significant concerns arise from the global tech slowdown and heightened tensions stemming from U.S.-China relations, affecting Taiwan's export-focused economy. Analysts warn that these dynamics could lead to downward pressure on the TWD, particularly considering the negative impacts of tariffs on Taiwanese goods.
Overall, while oil price trends may offer potential support for the CAD, the complexities of political shifts, U.S. trade policies, and concerns about Taiwan's economic environment significantly influence the CAD to TWD exchange rate outlook.