USD/CAD to converge towards 1.42 in the coming months – NBF

The Canadian Dollar has been treading water since last July. Economists at the National Bank of Canada analyze Loonie’s outlook.

No much room for CAD appreciation until the second half of 2024

Loonie's slide has been exacerbated by a series of weak economic reports. Market expectations have recently moved in the direction of our forecast of monetary easing. As a result, the CAD is currently facing the double whammy of a widening interest rate differential with the US and weaker commodity prices due to a slowing global economy. 

We expect USD/CAD to converge towards 1.42 in the coming months. 

We don't see much room for CAD appreciation until the second half of 2024.