Economists at Société Général analyze how the USD/CAD pair reacted to past Federal Reserve rate decisions and discuss if it could repeat the same performance this time.
USD/CAD peaked above 1.3600 after the Fed ended hiking cycle in December 2018
The USD/CAD pair peaked above 1.3600 just after the end of the last Fed hiking cycle in December 2018.
The US Dollar traded down to Canadian Dollar at 1.2600 as the Fed eased in 2019. A repeat is possible.
See: USD/CAD to drop towards 1.2800 by year-end – Scotiabank
Source: https://www.fxstreet.com/news/usd-cad-should-continue-to-fall-socgen-202402161423