Canada

The bullish move in USD/CAD has been pronounced after the pair bottomed in July, but now the question of topping starts to come in as a major resistance level has come back into the picture.

The Bank of Canada (BOC) are expected to hold rates at today’s meeting, given GDP unexpectedly contracted in Q2. Still, implied volatility has spiked higher for USD/CAD. Perhaps the BOC pause will not be as dovish as expected, Fed members tout a hold or the rise of bond yields (and therefore the US dollar) lose steam. If so, USD/CAD may be better for short bets beneath the April highs.

CAD/JPY has piqued our interest ahead of today's economic data, which includes PMI's for Europe and the US and Canada's inflation and retail reports.

During a hawkish speech, the BOC governor outlined which of the three ‘preferred’ CPI measures they will no long focus on, and why.

During a hawkish speech, the BOC governor outlined which of the three ‘preferred’ CPI measures they will no long focus on, and why.

CAD/JPY has pulled back to a pivotal support level, and today’s inflation report from Canada could make or break it.

Sometimes the obvious needs to be said. And that is exactly what the BOC’s deputy governor said in his op-ed by stating inflation “remains far too high”.

Whilst inflation has been hard to ignore, we are now seeing signs that the cooling of inflationary forces are finally showing up in some consumer prices.

Canadian Trade Balance will be published later today.

Three big events, three big chances for volatility in USD/CAD tomorrow.

The market seems to have taken the rate cut as “catching up” to other central banks.

With the ammo the Bank of Canada still has left, usd/cad can run up to 1.4682.

The value of the entire Canadian economy has fallen by more than 10% against Japan’s in a little over two weeks

The Bank of Canada cut rates today by 50bps from 1.75% to 1.25%

The BoC will need to decide whether they need to take any preemptive measures