FXStreet reports that economists at ING expect the USD/CAD pair to test the 1.20 psychological level.

“Inflation rose to 3.4% in April, which is a quite high figure considering the restrictions in place in many parts of the country. Retail sales for March soared past expectations and came in at 3.6% MoM. The data flow has clearly gone in the direction of mitigating the grim jobs numbers for April, and this is ultimately supporting hawkish expectations on the Bank of Canada. External factors should therefore drive the large majority of CAD moves, and leave the loonie more vulnerable to potential unwelcome swings in commodity prices.”