Going Long on USDCAD
The Canadian dollar (CAD) is expected to see some positive movement compared to the US dollar (USD) in the coming months.
Investors believe that both the Federal Reserve (Fed) and the Bank of Canada (BoC) will have similar policy cycles, and this could have a positive impact on the CAD. However, there are other factors that can contribute to the CAD gaining some strength against the USD.
If the Fed rate cycle is reaching its peak, which seems likely, it could lead to improvements in risk assets. This, in turn, could provide additional support for the CAD. Additionally, a weaker USD is beneficial for commodity prices, and this can also help strengthen the CAD.
Considering these various factors, there are indications that the CAD should experience some relative strength compared to the USD in the near future.
Key element:
we believe that USDCAD has reached the level we had announced back in our April analysis* and would expect a substantial up move from that Yellow Zone (from $1.31000).
*April analysis link :
Investors believe that both the Federal Reserve (Fed) and the Bank of Canada (BoC) will have similar policy cycles, and this could have a positive impact on the CAD. However, there are other factors that can contribute to the CAD gaining some strength against the USD.
If the Fed rate cycle is reaching its peak, which seems likely, it could lead to improvements in risk assets. This, in turn, could provide additional support for the CAD. Additionally, a weaker USD is beneficial for commodity prices, and this can also help strengthen the CAD.
Considering these various factors, there are indications that the CAD should experience some relative strength compared to the USD in the near future.
Key element:
we believe that USDCAD has reached the level we had announced back in our April analysis* and would expect a substantial up move from that Yellow Zone (from $1.31000).
*April analysis link :
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