Fuelled by near-zero interest rates, already-elevated prices in one of the world's hottest housing markets have surged over 50% since the pandemic began. Despite easing slightly in July to 7.6% from a near 40-year high of 8.1% in June, BoC Governor Tiff Macklem said it would "remain too high for some time," implying the central bank, which has already raised rates by 225 basis points this year, still has more to do. Therefore, the demand for CAD should increase. However, to what extend? We will need to see how big the hike is as compared to the Fed's hikes. Currently, the Fed is expected to raise 75 bps, Canada expected to raise only 25 bps. Therefore, I am expecting short this currency pair for the short term but long term view, to long the dollar.