USD/CAD: Loonie to continue outperforming, thanks to a resilient economy and a hawkish BoC – Scotiabank

The Canadian dollar has fared better than its peers throughout the year and is again somewhat of an outperformer in recent trading. Economists at Scotiabank expect the CAD to continue outperforming. 

Oil prices should continue to buttress the CAD

“We expect the loonie to continue outperforming, thanks to the support of a resilient economy and a hawkish central bank.”

“Crude oil markets remain tight despite weakening demand prospects, so oil prices should continue to buttress the CAD.”

“We note strong USD selling interest above the 1.30 level through the 1.3075/85 zone that has been consistent in capping USD gains in the past few months. We expect that interest to remain a presence in the market. Technically, USD gains through 1.31 open the door for additional USD strength to the 1.33 area, however.”