USD/CAD has slipped under 1.35. Economists at Scotiabank expect the pair to remain under downside pressure. 

More weakness ahead

“The USD is holding losses below 1.3520 short-term support (now resistance) which points to more weakness ahead and the breakdown from late Apr/early May range suggests losses could extend towards the low/ mid 1.34s in the next week or so.”

“A low USD close on the week would boost prospects for more USD softness ahead.”

“With the US swaps curve pricing in nearly 100bps of cuts, the CAD should be getting some more obvious support from yield spreads in the next few months, if market pricing is any guide.”