USD/CAD can break below 1.30 as early as this summer – ING

Economists at ING expect the USD/CAD pair to trade considerably lower.

USD/CAD can end the year closer to 1.25 than 1.30

A softening in the US Dollar can easily trigger a break below 1.30 as early as this summer.

We still expect a negative re-rating in US growth expectations later this year to hit the highly exposed CAD more than other pro-cyclical currencies, but the coincident drop in USD means that the USD/CAD pair can end the year closer to 1.25 than 1.30.