FXStreet reports that economists at the National Bank of Canada (NBF) expect the USD/CAD pair to edge lower towards the 1.20 level next year.

“Given that we do not see a significant drop in energy prices in the coming months, we believe that the CAD should appreciate against the USD.”

“We continue to expect another round of QE tapering from the Bank of Canada in October.”

“Given our upwardly revised forecast for the price of oil and natural gas, we now see USD/CAD at 1.20 in 2022.”