What's next for USD/CAD
CIBC Research adopts a bullish bias on USD/CAD, targeting the cross at 1.37 by end of Q3 and 1.38 by year-end.
"The loonie received a lift alongside other majors versus the greenback in the past month, helped by firmer crude prices . But the CAD has underperformed others like the euro, and the rally is now running on empty," CIBC notes.
"The strength in CAD appears set to reverse in short order as relatively weak fundamentals are revealed, and the global economic recovery stalls, giving a safe haven bid to the USD. We see USDCAD ending the third quarter at 1.37," CIBC adds.
