# Posthaste: Why the high-flying loonie could soar to 84 cents this year - Financial Post

> Capital Economics forecasts the Canadian dollar could reach 84 US cents by end-2021, citing undervaluation at the pandemic's start and a narrowing of Canada-US bond yield spreads. Economists say oil will be the key driver, with US crude up nearly 22% in February on tight supply expectations.

- Date: 2021-02-26 · published 2021-02-26T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/48893-posthaste-why-the-high-flying-loonie-could-soar-to-84-cents-this-year-financial
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

This is an analyst forecast rather than a new supply or demand event. If oil stays strong and the loonie appreciates, Canadian-origin feed and meal become marginally more expensive in US dollars.

## Read by commodity

- WTI: bullish ▲
- USDCAD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2021-10-25 | [Posthaste: The loonie is soaring above forecasts and come Wednesday could fly even higher - Financial Post](https://feedsoft.ai/events/44824-posthaste-the-loonie-is-soaring-above-forecasts-and-come-wednesday-could-fly.md) | -0.9% | -9.7% |
| WTI | 2021-12-16 | [Posthaste: The loonie's not done yet. BofA sees Canadian dollar at 83 cents next year - Financial Post](https://feedsoft.ai/events/43859-posthaste-the-loonie-s-not-done-yet-bofa-sees-canadian-dollar-at-83-cents-next.md) | +2.7% | +15.7% |
| WTI | 2018-01-02 | [Loonie starts the year on a tear, cracking 80 cents with a big boost from oil \| Financial Post](https://feedsoft.ai/events/67204-loonie-starts-the-year-on-a-tear-cracking-80-cents-with-a-big-boost-from-oil.md) | +2.1% | +6.9% |
| WTI | 2017-12-29 | [Who knew? The loonie is on track for its biggest yearly gain in eight years - Financial Post](https://feedsoft.ai/events/67693-who-knew-the-loonie-is-on-track-for-its-biggest-yearly-gain-in-eight-years.md) | +2.7% | +9.7% |
| WTI | 2022-06-07 | [Canadian dollar hits a 7-week high as yield spreads widen \| Financial Post](https://feedsoft.ai/events/41183-canadian-dollar-hits-a-7-week-high-as-yield-spreads-widen-financial-post.md) | +2.1% | -15.8% |

## Sources

- financialpost.com: https://financialpost.com/news/posthaste-soaring-loonie-has-further-to-fly-maybe-as-high-as-84-cents-economists-say/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.