Macquarie highlighted political unrest in Canada as a potential opportunity for investors, especially in foreign exchange markets.

Following the resignation of Chrystia Freeland and other cabinet officials, Canadian Prime Minister Justin Trudeau is under increasing pressure to step down, with calls for his resignation coming from within his own Liberal Party.

MPs from Trudeau’s party have expressed concerns about the lack of unity and are in favor of a leadership change.

Amid these developments, there are reports that Trudeau is taking the possibility of resigning seriously and may announce his decision in a scheduled speech to Parliament on Monday, before Tuesday’s adjournment.

This political upheaval has attracted the attention of traders who may be considering strategic long positions on the currency pair.

However, Macquarie advises caution, suggesting that the potential formation of a Conservative-led government could change the investment landscape.

According to the company, a conservative government in Canada would likely be pro-growth and could align with the U.S. policies of the Trump administration, potentially shielding Canada from U.S. import tariffs.

Macquarie speculates that the formation of a Conservative-led government could lead to the USD/CAD pair peaking sooner than previously expected.

This scenario is based on the expectation that a pro-growth Conservative government will strengthen the Canadian dollar relative to the US dollar, thereby influencing foreign exchange market dynamics.

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