USDCAD is snapping six-day uptrend. Economists at Westpac expect the pair to trend lower over the course of the next year and forecast USDCAD at 1.28 by end-2023.

CAD looks set for a run

“The Canadian Dollar has recently found itself in an interesting position, USDCAD remaining near its cycle highs despite the Bank of Canada delivering outsized rate hikes and signalling there is more to come; meanwhile, in our view, their economy has shown greater resilience than the US, Europe or the UK.”

“This status quo is unsustainable, so we continue to project USDCAD to lose altitude, targeting 1.28 and 1.26 as end-of-year levels for 2023 and 2024.”