USD/CAD to slide below 1.32 on soft US CPI and a somewhat hawkish BoC hike – Scotiabank

USD/CAD tests 1.32 ahead of US data and the BoC policy decision. Economists at Scotiabank analyze the pair’s outlook.

Losses to extend back to the 1.3100/25 area on a push under 1.3200

The CAD nudged just under 1.3250 into the close of trade Tuesday and has made a little more progress on Wednesday to test 1.32. Soft US CPI and a somewhat hawkish BoC hike should drive spot through the figure. 

A push under 1.3200 should see USD losses extend back to the 1.3100/25 area.

See:

• BoC Preview: Forecasts from eight major banks, enough evidence to pull the trigger on another 25 bps rate hike

• US CPI Banks Preview: Inflation to step meaningfully lower in June