Loonie's slide has been exacerbated by a series of weak economic reports. Market expectations have recently moved in the direction of our forecast of monetary easing. As a result, the CAD is currently facing the double whammy of a widening interest rate differential with the US and weaker commodity prices due to a slowing global economy. 

We expect USD/CAD to converge towards 1.42 in the coming months. 

We don't see much room for CAD appreciation until the second half of 2024.