Economists at ING expect the USD/CAD to move below the 1.30 level by the end of the year.

Short-term headwinds for CAD remain non-negligible

“Short-term headwinds for CAD remain non-negligible, starting from the US banking troubles (Canada is quite exposed), Oil’s uncertain performance and risk instability.”

“In line with our call for USD accelerating its decline in the second half of the year and oil prices to be supported, we think USD/CAD can move sustainably below 1.30 by the end of 2023.”

Source: Refinitiv, Macrobond, ING