USD/CAD to return to levels below 1.30 by the second half of 2024 – ING

USD/CAD should come lower next year, economists at ING report.

Loonie’s carry advantage to be slightly eroded over the course of the year

We expect the Loonie’s carry advantage to be slightly eroded over the course of the year, even though the structurally lower volatility compared to other high yielders should keep it a good option should market interest for carry be revamped.

A return to levels below 1.30 by the second half of 2024 remains our base case.

USD/CAD – 4Q23 1.37 1Q24 1.35 2Q24 1.33 3Q24 1.29 4Q24 1.27