According to a recently conducted Reuters survey, experts expect the Canadian dollar to strengthen against the greenback in 2022.

The median forecast for the USD/CAD pair stands at 1.2600 in three months, compared to 1.2500 in December's poll. By the end of the year, the pair is expected to decline by 3% to 1.2350, slightly higher than the previous forecast of 1.2300.

"Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the outlook for the global economy. Oil has rallied 27% since December," Reuters noted.

Market reaction

USD/CAD showed no immediate reaction to this headline and was last seen posting small daily losses at 1.2718.