Bullish Case For CAD Intact
The CAD has enjoyed a solid run over the past couple of months and was one of the least affected risk currencies during the latest round of sell offs we saw in other risk assets. The reasons to like the CAD to the upside is still intact and has some short-term supporting factors as well.
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There has been plenty of factors supporting the CAD over the past few months. Firstly, the BOC has been one of the least dovish central banks over the past couple months.
As the data started to look better and better over the past few months, alongside a less dovish BOC, has sparked growing speculation that the bank will move towards tapering their asset purchases in the next few months.
This was confirmed with this week's announcement from BOC's Dep Gov Gravelle that the bank is winding down some of its emergency market functioning programs. Even though the path of tapering will be gradual, it’s a bold step and the first among the majors to move out of the ultra-easy policy regime.
The other main driver for the CAD has been the strong push in Oil prices, with the climb in Oil nothing short of spectacular with its gain of more than 80% from November 2020.
With that in mind, attention this week will turn to the upcoming JMMC meeting as well as the ongoing challenge with the blocked Suez Canal.
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Highlights of the video:
00:15 – Current Baseline
04:21 – Baseline expectations for the upcoming week
08:24 – Sentiment Shifts & Trade Plan
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If you find these weekly analysis and trade ideas useful, you’ll love Financial Source. There’s a link below where you can learn more about it
https://financialsource.co
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://financialsource.co
-----
There has been plenty of factors supporting the CAD over the past few months. Firstly, the BOC has been one of the least dovish central banks over the past couple months.
As the data started to look better and better over the past few months, alongside a less dovish BOC, has sparked growing speculation that the bank will move towards tapering their asset purchases in the next few months.
This was confirmed with this week's announcement from BOC's Dep Gov Gravelle that the bank is winding down some of its emergency market functioning programs. Even though the path of tapering will be gradual, it’s a bold step and the first among the majors to move out of the ultra-easy policy regime.
The other main driver for the CAD has been the strong push in Oil prices, with the climb in Oil nothing short of spectacular with its gain of more than 80% from November 2020.
With that in mind, attention this week will turn to the upcoming JMMC meeting as well as the ongoing challenge with the blocked Suez Canal.
----
Highlights of the video:
00:15 – Current Baseline
04:21 – Baseline expectations for the upcoming week
08:24 – Sentiment Shifts & Trade Plan
----
If you find these weekly analysis and trade ideas useful, you’ll love Financial Source. There’s a link below where you can learn more about it
https://financialsource.co
