The USD/CAD pair, which was last seen hovering near the 1.2765-70 region, is expected to end the year around 1.25, according to economists at the Bank of Montreal. Key quotes “Canada’s economy is projected to grow 5.0% in 2021, the best year since 2000 and somewhat above the consensus view. After contracting about 5.5% in 2020, GDP should retrace its losses by year-end.” “With permanent job losses accounting for a third of the 1.6 million unemployed in November, the jobless rate will decline slowly, likely ending the year at a still-high 7.0%. As a result, the Bank of Canada is expected to keep policy rates near zero, while continuing to use forward guidance and bond purchases to limit upward pressure on long-term rates. We expect the 10-year bond yield to rise about 40 basis points to 1.1% by year-end.” “The Canadian dollar is expected to strengthen modestly to $1.25 (or 80 cents US) by late 2021. This is near purchasing power parity, limiting its impact on the economic recovery though keeping the trade deficit large. The loonie should benefit from firmer resource prices (WTI oil is expected to rise modestly to around $50 by year-end) as global demand improves and from further weakness in the trade-weighted greenback (down 5% in 2020) as safe-haven demand fades.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD Forecast: Stering ready to rally on vaccine optimism, as harsh lockdown locked into price Yohay Elam 1 year The USD/CAD pair, which was last seen hovering near the 1.2765-70 region, is expected to end the year around 1.25, according to economists at the Bank of Montreal. Key quotes “Canada's economy is projected to grow 5.0% in 2021, the best year since 2000 and somewhat above the consensus view. After contracting about 5.5% in 2020, GDP should retrace its losses by year-end.” “With permanent job losses accounting for a third of the 1.6 million unemployed in November, the jobless rate will decline slowly, likely ending the year at a still-high 7.0%. As a result, the Bank of Canada is… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.