USD/CAD: Break below 1.33 to set up a test of the 2023 lows around 1.3260 – TDS

Market news

8 June 2023

USD/CAD: Break below 1.33 to set up a test of the 2023 lows around 1.3260 – TDS

The BoC resumed tightening with another 25 bps rate hike in June. Economists at TD Securities analyze USD/CAD outlook after the surprising decision.

USD/CAD needs to move lower to reprice the hike

The Bank of Canada surprised markets with a 25 bps rate hike. While the market was pricing in around a 50/50 chance of a hike, USD/CAD needs to move lower to reprice the hike.

We continue to see a break below 1.33 as a path of least resistance, setting up a test of the 2023 lows around 1.3260.

Currencies. Daily history for Thursday, June 8, 2023

Commodities. Daily history for Wednesday, June 7, 2023

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