July was a roller coaster ride for the Canadian dollar. Economists at the National Bank of Canada still see USD/CAD converging to 1.22 in the coming quarters.

WTI oil prices should stabilize around $90 

“With the unemployment rate remaining historically low and with labour shortages continuing to persist according to the latest figures by the CFIB, we still see enough resilience in the Canadian domestic economy to justify higher interest rates.”  

“Given our expectation that WTI oil prices should stabilize around $90 per barrel, we still see USD/CAD converging to 1.22 in the coming quarters as the oil/loonie correlation turns positive again.”