Macquarie highlighted the political unrest in Canada as a potential opportunity for investors, especially in the currency markets.
Following the resignation of Chrystia Freeland and other cabinet officials, Canadian Prime Minister Justin Trudeau is under increasing pressure to resign, with calls for his resignation emerging from within his own Liberal Party .
Members of Parliament from Trudeau's party have raised concerns about the lack of unity and are calling for a change in leadership.
Amidst these developments, there are reports that Trudeau is taking the possibility of his resignation seriously and may announce a decision in a recorded speech to Parliament on Monday, before he enters to recess on Tuesday.
This political upheaval has caught the attention of traders, who may be considering strategic long positions in the currency pair.
However, Macquarie advises caution, suggesting that a potential increase by a Tory-led government could change the investment landscape.
According to the company, a Conservative government in Canada would likely want to grow and could be in line with the US Trump administration's policies, which could protect Canada from US import tariffs.
Macquarie contends that the formation of a Tory-led government could lead to an all-time high in the USD/CAD pair sooner than expected.
This position is based on the expectation that a Conservative government that favors the growth of the Canadian dollar would strengthen against the US dollar, thus affecting the dynamics of the currency market.
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