The pair USD / CAD it has regressed to the 1.25 area. Although the Canadian dollar is expected to stabilize in this region, in the opinion of ING economists, USD / CAD should move slowly but surely to the 1.20 level in the coming months.
USD / CAD expecting a gradual move to 1.20
“At the national level, fundamentals have continued to be very supportive for CAD. The Bank of Canada has continued to reduce asset purchases as the Canadian economy recovered and we believe they will end QE by the end of the year, which should allow markets to continue to speculate that the first hike will already occur in 2022. ”.
“In the coming months, USD resistance and uneven global recovery sentiment may keep USD / CAD around 1.25, but we still expect the pair to trend down to the 1.20 area as some stabilization in confidence would allow the CAD rate profile to support the currency. “
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