USD/CAD has neared the 1.32 level. In the view of economists at TD Securities, the loonie is starting to look more vulnerable as time passes.

CAD increasingly looking vulnerable

“We think the CAD is starting to look more vulnerable as time passes. This is because the BoC will not be able to run alongside the Fed on the policy front. At some point, the music will eventually stop and poor debt ratios will catch-up with the consumer.”

“1.30 looks satisfactory in forming a new higher base and we think dip buying towards this level will be justified. 1.32+ is the next topside level we are watching.”