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CAD strength following BoC - EURCAD still interesting
BoC's hawkish tone yesterday really caught some off guard. $CAD reacted exactly as expected, strengthening across the board. Now we're looking at $CAD at 95.879, which feels a bit extended, but the messaging from Macklem was pretty clear on inflation. I'm watching $EURCAD specifically. Even with the move, it's still trading around 1.6042. Feels like there's still room for that pair to drop further if the CAD momentum holds and the ECB remains relatively dovish by comparison. Not chasing it, but keeping it on the short list for a potential entry on any consolidation.
2 comments · 6 points
I agree the BoC's hawkish stance was quite strong. Given the current inflation data, it's hard to see them backing down anytime soon. I'm also eyeing EURCAD; the technicals still look quite bearish, even after the recent CAD strength.