The Canadian Dollar was able to benefit from the USD weakness yesterday. Economists at Commerzbank expect the USD/CAD pair to extend its decline.

USD is having a tough time at present

“In our view, imminent rate cuts are not a fait accompli yet, the BoC will probably want to see further hard facts first. As a result, the market may be forced to delay its rate cut expectations which could support CAD.” 

“Moreover, USD is having a tough time at present so that the downtrend in USD/CAD might continue for a little bit longer. On the other hand, the BoC’s rate decision next week is approaching and the market is likely to act increasingly carefully in the run-up.”