The CAD is still very touchy around data points
I remember when this thing wouldn’t budge much on data when the BOC was in full neutral mode but now we have hikes to play with, it’s jumpy as hell.
The wider deficit numbers have knocked USDCAD up through 1.2500 and into the recent resistance around 1.2520/40, as micro-manage rate expectations.
I’ve taken a small short up here to test the tech and these highs and I’ll be out on a break of 1.2550. The dollar overall is not doing a lot but we’re seeing another round of yen buying which is driving core pairs too. CADJPY is getting a double whammy which is why USDJPY is up so much. I might be going against the grain here but that’s why we use the tech to lean on and keep our risk as low as possible.
- Heads up for some early end of month FX clues on the MSCI rebalancing - November 11, 2021
- Everyone’s waiting for 112.50 in USDJPY - November 9, 2021
- Celebrate the taper by taking part in our NFP competition - November 3, 2021