USD/CAD to tick down to 1.42 amid stretched short-CAD positioning – Danske Bank

In Canadian Dollar (CAD) FX space, the reaction to PM Carney's snap election, scheduled for April 28, has been quite muted so far, Danske Bank's FX analyst Jesper Fjärstedt reports.

USD/CAD to target 1.45 on a 12-month horizon

"This is due to the backdrop of markets having expected the election to be called soon along with uncertainty related to the impending tariffs on April 2."

"Hence, tariffs continue to weigh heavily on USD/CAD. In the short term, we project USD/CAD to tick down to 1.42 amid stretched short-CAD positioning. Looking at longer horizons, we maintain our USD-positive view, targeting 1.45 on a 12-month horizon."