Macquarie Sees Stable USD/CAD Trend, Eyes 1.35 Mid-Year Target
Macquarie, a global financial services group, anticipates a stable trend for the USD/CAD currency pair, projecting it to reach 1.35 by mid-2025. This forecast is influenced by Canada's political landscape, particularly the potential for early elections leading to a Conservative-led government under Pierre Poilievre. Macquarie suggests that such a political shift could bolster the Canadian dollar (CAD), as a pro-growth Conservative administration might strengthen the currency.
It's important to note that the USD/CAD pair has experienced significant movements recently. In December 2024, the pair reached a four-and-a-half-year high of 1.4279, continuing to press toward the upper band of a bullish channel. Analysts indicated that the 1.4330-1.4365 area was in sight, with a potential to propel the price toward the 1.4500 level, last seen in March 2020.
However, Macquarie's mid-year target of 1.35 suggests an expected appreciation of the CAD, possibly influenced by domestic political developments and their impact on economic policies. Investors should monitor these political events closely, as they could significantly affect currency valuations and market dynamics.
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