There was a time when the analysts were tripping over themselves to predict higher and higher rates in USD/CAD. That was a sign of the top.
TD was particularly bad, calling for 1.18 at the end of Q2. With only 6 weeks left in the quarter, they’re scaling back the bullishness. TD analysts now see 1.12 at the end of June, which is still a hefty 300 pips from spot.
TD says stubbornly low US yields have sapped the USD of momentum and central banks are unlikely to provide a near-term jolt.
Their year-end forecast remains 1.15 and 1.11 in 2015.
