FXStreet reports that economists at MUFG Bank discuss USD/CAD prospects.

“Governor Macklem expressed more concern over Canadian dollar strength. He stated that ‘a stronger dollar creates some risk for our outlook. It is moved a lot further that could have a material impact on our outlook.”

“Our technical RSI signal shows that the Canadian dollar has become heavily overbought in the near-term which increases the risk it continues to correct lower in the near-term. Any weakness is likely to prove short-lived though while the Bank of Canada continues to signal that it plans to begin raising rates next year and is backed up by better than expected economic data releases from Canada.”