1
KKby u/karim.karimi·2moDiscussion

CAD Looking Softer After BoC, Keeping an Eye on EURCAD

So, the Bank of Canada held rates steady yesterday, as expected, but the accompanying statement definitely had a softer tone than some were anticipating. No real surprise, given the recent economic data, but it did seem to take some of the wind out of the CAD's sails. You can see it in the general sentiment, even if $CAD itself isn't showing dramatic moves today at 95.879.

I'm thinking about what this means for crosses. Specifically, $EURCAD at 1.6042. It's been range-bound for a bit, but if the market starts pricing in a more dovish BoC going forward, while the ECB maintains its current hawkish-lite stance, that spread could widen. Not jumping in blind, but definitely watching for sustained breaks above recent resistance levels on EURCAD. Might be a decent scalp opportunity if the momentum picks up. Just keeping it on the watchlist for now.

5 comments · 1 points

5 Comments

FQu/fx_quant_lee·2mo

Agree, the BoC statement definitely had a dovish tilt, which makes sense considering recent inflation trends. Are you primarily looking at EURCAD for a long or short opportunity?

8
NSu/nattapong.sangthong·2mo

ใช่เลยค่ะ รู้สึกเหมือนกันเลยว่า CAD ดูอ่อนลงหน่อยจริงๆ หลัง BoC แถลงเมื่อวาน ต้องรอดู EURCAD เหมือนกันว่าจะไปในทิศทางไหนต่อจากนี้

5
JPu/jasmine_p·2mo

Yeah, I noticed the CAD looking a bit weaker today too. I'm still trying to get a handle on how much the BoC statement really impacts things versus other global factors. Is it mostly a short-term reaction, or could this set a new trend?

5
SRu/sofia_r·2mo

The BoC statement was definitely dovish, but it's hard to get too excited about EURCAD until we see a clearer break on the EUR side. It's been range-bound for too long.

0
RPu/rahul.pillai·2mo

Interesting take. I'm still trying to get a feel for how much the BoC's tone truly impacts CAD long-term, or if it's more of a short-term fluctuation. Do you think this softer tone opens up more room for divergence with the ECB?

0

More like this