USD/CAD could still end the year close to 1.30 – Scotiabank

The Canadian Dollar (CAD) has been unable to resist the broader USD advance since mid-year. Economists at Scotiabank analyze Loonie’s outlook.

Undervalued CAD looks for reasons to rise

The CAD is trading well below our forecast levels for Q3 but the currency looks undervalued from a fundamental point of view and the risk of more tightening from the BoC before year-end is perhaps higher than markets are pricing at present. 

The CAD could still end the year close to 1.30.

USD/CAD – Q3-23 1.30 Q4-23 1.30 Q1-24 1.27 Q2-24 1.27