The post TD Securities Reveals Crucial 1.40 Target Amid Policy Divergence appeared on BitcoinEthereumNews.com.

Analysts at TD Securities have set a definitive technical and fundamental target for the USD/CAD currency pair, focusing market attention on the 1.40 level. This forecast, issued in early 2025, arrives during a period of significant monetary policy divergence between the Federal Reserve and the Bank of Canada. Consequently, traders and institutional investors are closely monitoring the macroeconomic drivers that could propel the pair toward this multi-year high. The analysis integrates chart patterns, interest rate expectations, and commodity price dynamics to build a comprehensive outlook for the Loonie against the Greenback. USD/CAD Forecast: Analyzing the Path to 1.40 TD Securities’ technical analysis identifies a clear bullish structure for the USD/CAD pair. The firm’s strategists point to a series of higher highs and higher lows established over recent quarters. Moreover, key moving averages have aligned to support further appreciation. The 1.40 target represents not just a psychological barrier but a significant technical resistance zone tested in previous market cycles. Therefore, a breach of this level would signal a sustained bullish phase, potentially opening the path toward even higher valuations. From a fundamental perspective, several concurrent factors support this upward trajectory. Primarily, the interest rate differential between the United States and Canada has widened. The Federal Reserve has maintained a notably more hawkish stance compared to its northern counterpart. This policy divergence directly increases the yield advantage of holding US dollar-denominated assets. As a result, capital flows have steadily favored the USD, creating persistent buying pressure against the Canadian dollar. Key Drivers Behind the Canadian Dollar’s Pressure The Canadian dollar’s value is uniquely tied to the global commodity cycle, particularly crude oil prices. Historically, a strong correlation exists between West Texas Intermediate (WTI) crude and USD/CAD. However, this relationship has shown signs of strain. Despite periods of firm oil prices, the Loonie…

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Filed under: News - @ March 31, 2026 7:27 pm