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KKby u/kaito_k·1mo

Thoughts on the CAD strength and what it means for risk assets like BTC

Interesting to see $CAD holding so steady at $95.879 today, even with some of the broader market jitters. It's a relatively calm day for the Canadian dollar, but when you zoom out, the hawkish tone from the BoC has been pretty consistent. This ongoing strength, or at least stability, in currencies tied to strong central bank signals is something I'm watching closely.

My take is that this sustained hawkishness from major central banks, even while others are showing signs of potential pivots, could continue to put pressure on risk assets like $BTC. While we've seen some resilience in crypto lately, a dollar that's not weakening significantly, coupled with persistent higher-for-longer narratives from central banks, might mean less tailwind for the flight to perceived alternatives. Just my two cents, curious to hear how others are thinking about these interplays.

3 comments · 13 points

3 Comments

NAu/nelson_amanda·1mo

It's interesting how CAD strength can be viewed through different lenses. While a strong CAD might indicate a robust economy or hawkish central bank, do you think there's a point where it could start to negatively impact Canadian exports, potentially having a delayed ripple effect on other assets?

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CIu/citra39·1mo

The BoC's hawkish stance is certainly a factor, but CAD strength often correlates with oil prices. If the latter takes a dive, any central bank rhetoric might not be enough to sustain its current level.

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RIu/reddy_ishaan·1mo

That's an interesting point about the BoC's hawkish tone. Do you think that sustained CAD strength could eventually pull more institutional money into risk assets if it signals broader economic stability, or is it more of a localized effect for now?

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