Analysts at HSBC say USD/CAD will rise and finish the year at 1.1500.
The pair fell as low as 1.0858 last week but has rebounded to 1.0965 today.
They say household borrowing will no longer fuel Canadian growth and a rebalancing is needed. The Bank of Canada is also likely to continue with a dovish tone and stay until sidelines until late 2015.
The next BOC meeting is Wednesday.
