RBC: USD/CAD Already at our 1.35 Q3 target; what's next?

<p>RBC provides insights on the future trajectory of USD/CAD, which has already hit their end-Q3 forecast of 1.35. Here are the main takeaways:</p><ol><li><p>Short-Term Uncertainty: USD/CAD's trajectory seems uncertain in the near term, likely to be influenced by developments around the USD. The bank believes the currency pair will see a range-bound movement in the coming days and weeks.</p></li><li><p>Year-End Forecast: RBC maintains its year-end target for USD/CAD at 1.38. This forecast hinges on a mild recovery in the USD towards the end of the year.</p></li><li><p>Factors Influencing Movement: RBC is currently monitoring for signs of either a US or global economic slowdown. The distinction is crucial because a slowdown in the US would put downward pressure on USD/CAD, while a global downturn would likely support the currency pair.</p></li></ol><p>In summary, RBC's view on USD/CAD is cautious. While they have retained their short-term and year-end forecasts, they emphasize the role of the broader USD trend and global economic dynamics in shaping the pair's future direction</p><p>I wrote about my target for USD/CAD <a href="https://www.forexlive.com/news/the-canadian-economy-has-hit-the-economic-wall-expect-canadian-dollar-weakness-to-follow-20230814/" target="_blank" rel="follow">here</a>.</p><p>For bank trade ideas, <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1692385135783000&amp;usg=AOvVaw14qBbunQQ1Bls880F1NkMS">check out eFX Plus</a>. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1692385135783000&amp;usg=AOvVaw14qBbunQQ1Bls880F1NkMS">Get it here</a>.

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This article was written by Adam Button at www.forexlive.com.