Analysts at Citibank see the USD/CAD pair moving to the downside over the next months. The see the pair around 1.29 in a three-month perspective and at 1.25 in a six to twelve-month horizon.
“The Loonie has benefitted greatly from decreasing global uncertainty, as it trades high beta to risk-on; we expect this momentum to continue through 2021 and correspondingly a lower USD to be an important positive CAD driver. Besides, The Canadian government continues to support the economy. On the central bank front, the BoC has already paused some of their easing measures, which may also support CAD.”
“USDCAD hovers around 1.3000 with major support seen between 1.2952/1.3000. Should the unit break through this support area, momentum is likely to rapidly build towards sharper declines targeting 1.2700 – 1.2800.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.