The Canadian dollar continues to track the broader USD movement while trading within a stable, low-volatility range. The outlook anticipates the currency pair to hover near 1.40 during summer before eventually shifting toward 1.35 as central bank policy differentials stabilize.
Key Takeaways
- 1.USD/CAD has remained trapped in a tight 1.35-1.40 range for the past year amid historically low volatility.
- 2.USMCA-related risks are currently on the back burner, pushing potential trade review timelines to 2027.
- 3.Alberta's independence referendum is a structural risk but currently has low perceived probability of impacting CAD.
Table of Contents
- Not much fervour yet
- Extra time needed
- BoC vs Fed: anyone aiming too high?
- Conclusion
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Authors
Alexandre Dolci
Securities
USD/CAD
Themes
USMCA ReviewMonetary Policy DivergenceCanadian Regional Separatism
Regions
North AmericaCanadaUnited StatesMexico