Analysts at Bank of Tokyo Mitsubishi explained that their expectations for a gradual rebound in the price of oil and further widening of yield spreads between the US and Canada will have offsetting impacts on the outlook for USD/CAD. Key Quotes: "As a result we believe that it will result in a more stable USD/CAD helping to ease current elevated volatility." "USD/CAD is likely to remain in a narrower trading range between the 1.2500 and 1.4000 levels. In contrast to the roughly 28 big figures trading range recorded over the last year between 1.1920 and 1.4690. Overall we continue to expect a modest strengthening of the Canadian dollar in the year ahead." For more information, read our latest forex news.