USD/CAD expected to head above 1.3

The Canadian dollar is quietly advancing to be the top G10 currency this month. Economists are keen to analyze USD/CAD outlook.

Canada’s dollar generally tends to do well when Fed rates peak. The USD/CAD pair is trading at 1.3155 at the time of writing.

While the outlook for Fed Funds is cloaked in plenty of uncertainty, we’re in the final stage of this tightening cycle. With the FOMC still warning of further hikes and wildfires likely to affect Canadian growth data, the fall back to the mid-1.20s won’t be in a straight line, but economists think that’s where the pair is heading.