FXStreet reports that given the Bank of Canada’s policy stance, economists at the Bank of Montreal (BMO) expect USD/CAD to edge lower towards 1.20 by late 2022.
“The central bank's hawkish pivot and rising energy prices have put some wind under the Canadian dollar's wings.”
“We see the loonie cruising moderately higher to 1.20 by late 2022 as the Bank hikes rates ahead of the Fed, though an expected moderation in energy prices will cap its altitude.”