CAD: When The World Watches

The CAD has remained range-bound against the USD as market participants weigh domestic macro data against widening interest rate spreads. Analysts expect USD/CAD to remain elevated through summer before targeting 1.35 by year-end.

Key Takeaways

• 1.USD/CAD is expected to hold near the 1.40 upper bound through the summer before targeting 1.35 towards year-end.
• 2.The widening of short-term USD-CAD rate spreads is likely nearing exhaustion, which should help stabilize the exchange rate.
• 3.Risks related to the USMCA review have been pushed to next year, removing a near-term volatility catalyst for the CAD.

Table of Contents

• CAD: when the world watches
• Not much fervour yet
• Extra time needed
• BoC vs Fed: anyone aiming too high?
• Conclusion

Document Preview

Page 1 of 1

Subscribe for full accessStart Free Trial