We still think the balance of risk for USD/CAD is skewed to the topside from here. We pencil in a return of broad-based USD strength and we believe the relative growth outlook between the US and Canada favours a higher cross. 

Also, the tail-risk related to private debt in Canada remains a tail-risk which should limit the potential for relative rates to send USD/CAD much lower from here.

Forecast: 1.35 (1M), 1.36 (3M), 1.37 (6M), 1.37 (12M)