USD/CAD to move towards 1.45 in the coming quarters – NBF

The Canadian Dollar has seen a recent appreciation. Nonetheless, economists at the National Bank of Canada do not expect Loonie to strengthen further.  

Not much room for CAD appreciation until the second half of 2024

Looking ahead, we don't see much support for the CAD given our forecast for a slowing global economy and the potential for more aggressive interest rate cuts in Canada relative to the US due to weaker domestic demand. 

Given our recession scenario for the Canadian economy in H1 2024, we now expect USD/CAD to move towards 1.45 in the coming quarters and don't see much room for CAD appreciation until the second half of 2024.