FXStreet reports that economists at CIBC Capital Markets discuss USD/CAD prospects. 

“A growing consensus for a sharper Fed QE tapering and subsequent rate hikes have provided an offset to the commodity price enthusiasm for the CAD. Both of those forces should persist in the coming months, seeing USD/CAD end the year at today's level even as the Fed announces its tapering plan, likely in November.”

“While the BoC is likely to further taper its QE program in October, it will use that same meeting to push back its forecast for achieving a zero output gap into Q4 of 2022, and markets will begin to price in a lighter path for its policy rate as a result. Shortly thereafter, the start of a quick Fed tapering path will have investors upping medium-term projections for the fed funds rate, suggesting a weaker CAD in 2022.”

“Look for USD/CAD to end 2022 at 1.30, with a continued depreciation likely in 2023.”