ING analysts maintain a bullish outlook for USD/CAD, citing limited upside for the loonie despite the Bank of Canada's recent 25bp rate hike to 2.50% and expectations of future tightening.
ING analyst Francesco Pesole suggests that the Canadian Dollar faces limited upside potential against the US Dollar despite the Bank of Canada's recent 25 basis point rate hike to 2.50%. The outlook remains supported by expectations of further tightening, with another hike anticipated in early 2027 and the possibility of accelerated action if energy prices remain elevated.
Following the recent 25bp hike, the interest rate is 2.50%.
ING anticipates another rate hike in early 2027, though this could occur sooner if energy prices remain high.
The Bank of Canada has raised interest rates by 25 basis points to 2.50%, with analysts at ING anticipating further tightening by early 2027. Despite the hawkish policy shift, the Canadian dollar faces limited upside potential against the greenback as energy price volatility keeps the USD/CAD pair supported.
ING analysts suggest the Canadian dollar has limited upside potential, keeping the USD/CAD pair supported despite the recent 25 basis point rate hike.