Thoughts on CAD strength amidst rate hike speculation
Watching $EURCAD today, currently around 1.60458, and it's interesting to see it holding relatively steady despite the broader CAD strength discussions picking up. There's been a lot of chatter about the BoC potentially getting more hawkish, which you'd think would push it lower.
I'm still keeping an eye on how the market digests the upcoming Canadian jobs data. If that comes in strong, it could really solidify those rate hike expectations and we might see a more significant move down on $EURCAD. For now, it feels like a bit of a waiting game, but the bias seems to be there.
It's not just the jobs data; the market's also trying to price in how sustainable any BoC hawkishness really is given global economic headwinds. A strong jobs report might be a temporary boost if the underlying inflation isn't looking robust.