Batter Up For The BOC
The overall outlook for the Canadian Dollar has been growing rosier over the past of months as much better-than-expected economic data, a less dovish central bank, rising oil prices and an improving global risk outlook has provided a fundamental bullish bias. So, if that’s the case why has the CAD been struggling recently?
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We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
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The positive drivers for the Canadian Dollar have been growing as of late. Economic data has been surprising to the upside with RBC noting that Q1 growth is tracking close to 6% annualized which is miles ahead of the BOC’s 2.5% projection.
Apart from that Oil prices have finally broken out of its recent slumber and taken out key resistance between 1.60 and 1.62 this week after yet another bigger-than-expected draw in EIA inventories.
On the central bank side, the BOC has been one of the least dovish central banks for the past couple of months now, also scaling back some of their market functioning purchase programs in the middle of March. Positioning wise the CAD is very close to neutral positioning at the moment, so nothing that should be sparking any concerns for the bulls.
So, with all of that said, with all the positives in the mix, why have the CAD been failing to gain any real momentum over the past few weeks and tracking close to the bottom of the pack in a basket of major and EM currencies versus the Dollar?
We’ll go through all of that in this week’s week ahead video.
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Highlights of the video:
00:19 – Current Baseline
04:19 – Baseline expectations for the upcoming week
08:48 – 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
-----
The positive drivers for the Canadian Dollar have been growing as of late. Economic data has been surprising to the upside with RBC noting that Q1 growth is tracking close to 6% annualized which is miles ahead of the BOC’s 2.5% projection.
Apart from that Oil prices have finally broken out of its recent slumber and taken out key resistance between 1.60 and 1.62 this week after yet another bigger-than-expected draw in EIA inventories.
On the central bank side, the BOC has been one of the least dovish central banks for the past couple of months now, also scaling back some of their market functioning purchase programs in the middle of March. Positioning wise the CAD is very close to neutral positioning at the moment, so nothing that should be sparking any concerns for the bulls.
So, with all of that said, with all the positives in the mix, why have the CAD been failing to gain any real momentum over the past few weeks and tracking close to the bottom of the pack in a basket of major and EM currencies versus the Dollar?
We’ll go through all of that in this week’s week ahead video.
-----
Highlights of the video:
00:19 – Current Baseline
04:19 – Baseline expectations for the upcoming week
08:48 – 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
