USD/CAD: The road to 1.20 is still open – NBF

The Canadian dollar continues to do well, finishing April at its strongest in more than three years against the greenback. With the Bank of Canada looking to move a bit ahead of the Federal Reserve and the taper progressing, economists at the National Bank of Canada see the USD/CAD trading at 1.20 by the third quarter. 

The CAD continues to strengthen

“We see more QE tapering coming before year end and the BoC’s first rate hike likely in October 2022, well before the first Fed rate hike expected in Q1 2023.”

“With the Bank looking to move a bit ahead of the Fed and the BoC tapering progressing, we see our USD/CAD 1.20 forecast arriving one quarter earlier than scheduled, in Q3 2021.”