Despite the surprisingly notable rate hike on the part of the Bank of Canada (BoC) yesterday, the CAD eased strongly against USD. In the view of economists at Commerzbank, the USD/CAD pair is set to trade comfortably above the 1.30 level.

External factors to remain in control for now

“The BoC made it clear once again yesterday that the fight against inflation takes top priority. There is little potential for surprises on that front. And for that reason, external factors are likely to remain in control for now.”

“CAD is likely to struggle to appreciate well below the 1.30 mark against USD.”