The CAD is having a good October as it has posted a solid 2.5% gain on the USD so far.  Economists at Scotiabank see USD/CAD downside potential to the low 1.22s.

Rallies to run out of steam around the mid-1.24s

“If the USD manages to steady around 1.2365/70 into this week, a modest correction could develop. We expect USD gains to remain limited to the low/mid 1.24s, however, with daily and weekly trend momentum signals aligned bearishly for the USD.”

“We think USD/CAD can print a 1.22 handle ahead of year end.”