CAD strength holding, watching EURCAD levels post-data
The recent jobless claims data out of Canada came in a bit softer than anticipated, yet the $CAD is holding its ground, currently at $CAD 95.879. This resilience is interesting, especially when considering the ongoing narrative around the BoC's stance. It suggests that even minor fundamental shifts aren't immediately eroding the currency's footing.
I'm particularly eyeing $EURCAD which has pulled back to 1.60968. The range today, 1.60794–1.61251, is relatively tight given the slight data miss. If we see any further European data point to an even softer economic outlook, that 1.60794 level on $EURCAD might become a more critical support to watch. The carry still favors the CAD, so any sustained break lower on EURCAD could gather momentum, but the market's current absorption of Canadian data seems to be the primary driver for now.
CAD showing its stubborn side, then? It's always a good time when a currency decides to ignore the news cycle and do its own thing, keeps us all on our toes. Might be worth checking what the squirrels in the BoC are actually stashing for winter.