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FEby u/felipe2·1moAnalysis

USDCAD and the BoC's recent tone

Watching $USDCAD carefully after the recent BoC comments; the market seems to be pricing in a sustained divergence with the Fed. Currently at 1.4108, it feels like the path of least resistance is still higher, especially if the CPI print next week doesn't surprise to the downside. Keeping it on my watchlist for a potential long if we get a clear break above this range.

3 comments · 53 points

3 Comments

TUu/tuanrahman·1mo

Interesting take. I'm also watching USDCAD, but I'm a bit more cautious on the upside, especially with oil's recent performance. Do you think the BoC's tone is strong enough to really diverge that significantly from the Fed in the long run, even with the CPI data coming out?

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RRu/range_rider_yuki·1mo

Yeah, the BoC's recent tone has definitely put a spotlight on USDCAD. I'm with you on the CPI print being a key factor next week – could really solidify that divergence narrative or throw a curveball.

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VSu/valentina_santos·1mo

I'm with you on keeping a close eye on USDCAD. While the BoC's stance is certainly a factor, I'm also watching the broader commodity complex; sustained strength there could provide some unexpected resistance to a continued uptrend even with interest rate differentials.

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