CAD Rises that Makes it Safe to Spend On
The week is going to be big for the global market because we are hearing a lot of reports out of the US and the macro calendar is loaded with Federal Reserve and nonfarm payrolls documents. The Canadian dollar is going toward a big week after the bank of Canada surprised after announcing their QE program. The incident happened on Saturday that gave a strong push to CAD as the USD/CAD got down to 1.2300 handles.
As the US and Canada are two hawkish central banks right now in the market, combining the two currencies in a pair for the trends is not seen as a weak idea. Traders may see the USD and CAD as a weaker currency that is backed by the central bank which is not going to tighten the policy soon that includes the Japan, Yen, and Euro.
The currency pair of Canada and Japan CAD/JPY can be profitable to deal with considering the oil segment of the world. The pair was great for October as the prices got increased to 90.00 that come under the six-year highs. The CAD/JPY is getting attractive as the bank of Canada is getting strong from the market movement and becoming more hawkish to inflation. The country’s oil strength is boosting that will improve the Canadian economy soon.
This situation is great for the bank of Japan that is sitting at negative rates right now and is continue to experience this for six years. If Canadian dollar rates are going to be up and the Japanese rates are going to fall, the attractiveness of trades will come back and will get a boost. The trend CAD/JPY is going to be up with 23.6% as a major move. The situation will make a bullish pair soon. Let’s see how quickly things will move.