USD/CAD: Poised to head toward the peak of last year at 1.3980/1.4040 – SocGen

The CAD lost further ground after the Bank of Canada kept interest rates on hold as expected at 4.50%. Economists at Société Générale expect the USD/CAD pair to grind higher toward 1.3860, then 1.3980/1.4040

CAD to languish

“The Loonie looks poised to head towards 1.3860 and the peak of last year at 1.3980/1.4040.” 

“Disappointing US employment or a second successive month of above forecast Canadian job gains and hawkish BoC repricing could elicit CAD dip buying at oversold levels relative to 2y2y forwards.”