The loonie's rally might be running out of steam. Market watchers are dialing back their optimism on the Canadian dollar as trade negotiations continue to drag on without resolution. What looked like a bullish setup weeks ago? Now facing headwinds. Analysts surveyed recently show a noticeable shift in sentiment—fewer are betting on significant CAD strength in the near term. The sticking point? That elusive trade deal everyone's been waiting for. Without concrete progress on the trade front, currency forecasts are getting trimmed. It's a reminder that in forex markets, geopolitical uncertainty can flip sentiment fast. For those tracking macro plays, the CAD situation offers a textbook case of how policy limbo impacts currency positioning. Worth keeping an eye on how this unfolds in Q2.