The CAD weakened against the USD over the past month. Economists at ING expect the USD/CAD pair to slide below the 1.30 level in the second half of the year.

BoC to stay put

“We expect no more hikes by the BoC given a worsening outlook for the property market and the broader economy.”

“When adding an energy commodity bloc that is struggling to rebound and the very low exposure to the good China story, it seems likely that CAD won’t be at the forefront of a risk rally.”

“USD/CAD below 1.30 is still what we expect to see in the second half of 2023, but that should mostly reflect a broad improvement in risk sentiment and USD weakness rather than idiosyncratic CAD strength.”