USD/CAD: 1.35-1.37 is the range into year- end – ING

USD/CAD hovers around the mid-1.35s. Economists at ING analyze the pair’s outlook.

Pressure on the BoC to soften its hawkish bias is mounting

We doubt Canadian unemployment is bound for a sharp rise in the near term, but the pressure on the BoC to soften its hawkish bias is mounting anyway.

Our call is for 150 bps of cuts in Canada next year, but the near term outlook for the Loonie remains strictly tied to US data, with which it is highly correlated. 

We feel 1.35-1.37 is the range for USD/CAD into year-end.

See – Canada Employment Preview: Forecasts from five major banks, jobless rate ticking higher