Economists at HSBC expect the Canadian Dollar to struggle for the time being.

Hard to make an idiosyncratic case for near-term CAD strength

“The near-term local focus is likely to be on the Bank of Canada’s (BoC) meeting on 8 March. The BoC has already signalled a conditional pause and the market has taken this on board, with just 2 bps priced in for March and 8 bps by April (Bloomberg, 27 February 2023).”

“Beyond the BoC, the focus for USD/CAD will move to the employment reports from both the US and Canada on 10 March, and then to the US CPI release on 14 March. But in the end, it is hard to make an idiosyncratic case for near-term CAD strength.”

“Like its central bank, the CAD looks likely to hit the pause button.”