USD/CAD could rise to 1.36 in Q1, 2020 - JPMorgan

JPMorgan expects weak Canadian growth and the resulting dovish Bank of Canada (BOC) expectations to power USD/CAD higher to 1.36 in the first quarter of 2020.

The currency pair is currently trading at 1.3286, representing a 2.6% drop on a month-to-date basis. 

Key points

Bank of Canada to cut rates in January. 

The Canadian dollar is likely to underperform against low-yielding currencies like the Euro and Swiss Franc. 

Canadian dollar could do well against cyclical G10 currencies like AUD which are facing their own internal headwinds.