Jens Pedersen, Senior Analyst at Danske Bank, expects the pair to grind lower in a 6-month horizon. Key Quotes “The oil price has stabilised partly because of the repricing of the path of Federal Reserve rate hikes this year and next year”. “Both factors have weighed on USD/CAD over the past month”. “We see some upside risk to USD/CAD in the short-run as we expect oil prices to stay low and see some upside for USD and US rates”. “On 6M-12M, a recovery in oil prices and a stronger external economic situation would send USD/CAD lower”. For more information, read our latest forex news.