USD/CAD's trajectory seems uncertain in the near term, likely to be influenced by developments around the USD. The pair will see a range-bound movement in the coming days and weeks.

We maintain our year-end target for USD/CAD at 1.38. This forecast hinges on a mild recovery in the USD towards the end of the year.

A slowdown in the US would put downward pressure on USD/CAD, while a global downturn would likely support the pair.