In a report prepared by National Bank Financial (National Bank of Canada) analysts forecast the USD/CAD pair will remain in the 1.33 to 1.38 range over the next quarter. 

Key quotes: 

“The Canadian dollar has strengthened in recent weeks, gaining nearly 5 cents against the U.S. dollar. The resilience of the Canadian economy and a less dovish BoC have led to a significant reduction in Canada-U.S. interest rate differentials since the fall of the SVB.”

“Looking ahead, we do not believe that the loonie will benefit from a continued narrowing of interest rate spreads. In light of the recent drop in commodity prices, we expect the USD/CAD to remain in the 1.33 to 1.38 range over the next few quarters.”