USD/CAD to remain above 1.26 as Canadian GDP surprisingly contracts – OCBC

USD/CAD is trading around 1.26 after Canadian quarterly growth disappointed with -1.1% annualized in the second quarter. Economists at OCBC Bank expect the pair to stay above the 1.26 level.

See: USD/CAD to find solid support at the 1.25 level – TDS

Loonie may have topped

“Some surprise weakness on the GDP front may compel a reconsideration of Bank of Canada expectations in 2022, leaving USD/CAD firmer above the 1.2600 resistance.” 

“1.2560 to 1.2650 range to bookend this pair, pending better clarity after the US NFP print.”