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USD/CAD is running on empty, where to target – CIBC

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.

USDCAD chart

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