USD/CAD has settled in the mid/upper 1.3400s. Economists at the Bank of Montreal analyze the pair’s outlook.

CAD is unlikely to take flight

The Canadian Dollar (CAD) remains boxed in a narrow, depressed range. 

Given the country's poor economic and productivity performance, CAD is unlikely to take flight. However, assuming the trade-weighted Greenback continues to retreat from earlier record highs, the Loonie could strengthen modestly to 1.3200 by year-end.