USD/CAD looks set for further upside beyond 1.3700. Economists at TD Securities expect the pair to test the 1.38 level.

A higher Fed terminal means the BoC has a bigger problem now

“1.37 is a key pivot level as it marks downtrend resistance from the October 13th highs.”

“A higher Fed terminal means the BoC has a bigger problem now; the risk is growing of a wider terminal rate differential with the Fed, which means greater risk of more damage to the interest rate sensitive sectors of the economy.”

“Short-term, a topside extension to 1.38+ should be in the offing as risk looks challenged here.”