In line with their bullish commodity view, economists at Credit Suisse maintain a medium-term preference for commodity currencies, especially the Canadian dollar. The USD/CAD is set for a test of the 2017 low at 1.2062, in their view.
See: USD/CAD set to nosedive towards the 1.1750 mark by end-2022 – BMO
CAD is still the favored G10 commodity currency
“With commodities surging and completing a long-term base, the commodity currencies should benefit, with USD/CAD one of our favored expressions.
“We still see scope for USD/CAD to eventually test the 1.2062 low, which is expected to be a tough initial barrier.”
“It’s worth noting though that a break below the 1.2062 2017 low would complete a multi-year ‘double top’ on the monthly charts, marking a highly significant technical breakdown.”
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