USD/CAD to hit the 1.28 level on risk aversion – Mizuho

The USD/CAD pair opened July trading at 1.2437. It hit a monthly low of 1.2303 on July 6 and monthly high of 1.2807 on July 19. In August, USD/CAD is expected to move in a range between 1.22-1.28, as reported by economists at Mizuho Bank.

BoC will move towards rate hikes

“The US and other nations are seeing a rise in COVID-19 cases on the spread of new variants, so the Canadian dollar will be sold at times on risk aversion, with the USD/CAD pair likely to rise to around 1.28 at times. However, the Canadian economy is recovering at a steady pace, even compared to other developed nations.”

“With expectations for rate hikes also growing, the Canadian dollar looks set to move firmly, with USD/CAD expected to move between 1.22-1.28 in August.”