USD/CAD visited a low of 1.2403 earlier in the month. Economists at Rabobank expect the pair to temporarily trade back below 1.25 as oil prices rise again. 

USD/CAD to primarily trade in a 1.25-1.27 range heading mid-year

“We expect USD/CAD to revisit trading below the 1.25 handle as oil prices surge once more, but we think the pair will primarily trade in a 1.25 to 1.27 range heading into the middle of the year.”

“Near-term, we see strong support at 1.2470 before the 1.24 handle, while on the upside, we expect some resistance at 1.2660, but 1.27 is the important level to watch for as a confirmed close north of there will likely usher in a test of 1.2820 in short order.”