eFXdata reports that Bank of America Global Research discusses USD/CAD outlook.

"We see limited downside potential in USD/CAD from current levels. The broader USD has declined back to equilibrium. Global risk assets have already to a large extent priced in global recovery. Most importantly, as 2021 plays out, US vs. CA fundamentals look unlikely to deteriorate particularly on the back of large fiscal expansion in the US, which should keep USD/CAD fair value supported near our current estimate of around 1.29. In fact, our expectation is for US-CA rate differentials to rise, provided that oil prices prove contained despite ongoing recovery," BofA adds.