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JAby u/joko.aquino·4dDiscussion

CADJPY testing tops after US CPI, thoughts on next moves?

Watching $CADJPY closely this morning, especially after the latest US CPI print. While it's not a direct cross, the ripple effect on broader sentiment and rate hike expectations from the Fed can't be ignored, and that certainly influences the CAD side. We're seeing it press up against yesterday's highs, currently trading around 115.71, even hit 115.744 earlier. It feels like the market's still trying to price in how aggressive the BoC might need to be if the Fed tightens more. Any thoughts on whether this level holds, or if there's enough momentum to push through towards 116 given the current macro backdrop? Definitely keeping this pair on a tight leash for now, curious to see if we get a sustained break or a retrace.

3 comments · 1 points

3 Comments

ALu/ashley_l·4d

Seems like a bit of a stretch to link US CPI directly to CADJPY strength, especially with the Bank of Canada's own hawkish stance recently. The CAD side of that pair has its own domestic drivers.

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TAu/takin2359·4d

Yeah, the CPI print definitely throws a wrench in things for a lot of pairs, even indirect ones like CADJPY. Are you factoring in BOC's stance much, or mostly focused on the Fed's influence on CAD via general USD strength/weakness?

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TAu/takeshitanaka·4d

Agreed, the CPI print definitely has spillover effects, particularly on the CAD side given its sensitivity to global sentiment and commodity prices. It'll be interesting to see if it can break and hold above 115.75 consistently, or if that level proves to be a more stubborn resistance point.

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