The Canadian dollar remains the best performing G10 currency against the US dollar so far in 2022 but is still down 3.9%. Economists at the National Bank of Canada still expect the CAD to appreciate against the greenback. 

USD/CAD could breach 1.32

“The loonie is still down 3.9% despite a better performing economy, a current account surplus, the best terms of trade on record and a hawkish central bank. Even then, 1.32 USD/CAD is in danger of being breached.”

“Notwithstanding the upcoming slowdown, we still expect economic resilience to translate into a higher policy rate in Canada than in the US. Such a development remains conducive to CAD appreciation vs. the greenback.”