The recent US dollar decline is just the start. Economists at Westpac expect the greenback to lose ground against the euro, sterling and Canadian dollar. 

Canadian economy seems more resilient to current headwinds than the US

“EUR/USD is seen appreciating to 1.09 end-2022 and 1.15 end-2023.”

“A robust gain is anticipated for the UK’s sterling to 1.26 end-2022 and 1.34 by end-2023.”

“Modest additional support for the US dollar downtrend should also come from Canada’s dollar, with their economy seemingly more resilient to current headwinds than the US. To our forecast move in USD/CAD from 1.29 currently to 1.25 end-2023, risks are skewed downward given the anticipated broad-based US dollar decline over the period.”