The USD/CAD pair was taken back to Wednesday’s levels after the retracement of the broad USD. Terence Wu, FX Strategist at OCBC Bank, highlights the 1.2050 and 1.2000 marks as the next support levels though expects the loonie to enter a phase of consolidation.

Potential CAD consolidation

“1.2050 would be the first support, before stronger supports around the 1.2000 level.” 

“Expect the pace of CAD appreciation to slow down at current levels.”