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Watching CAD after yesterday's jobs report
That surprise Canadian jobs print yesterday really put a wrench in the Bank of Canada's dovish pivot narrative, didn't it? It's interesting to see $USDCAD trading around 1.40004 today, seemingly trying to find its footing after the initial reaction. I'm keeping a close eye on $NZDCAD as well, trading up at 0.8232; it seems to be benefiting from the broader CAD weakness, which makes me think this might be more than a one-day blip. This makes me wonder if we're going to see a more sustained shift in CAD pairs if the BOC holds off on rate cuts longer than expected. Definitely something to monitor for a potential longer-term play.
2 comments · 17 points
The CAD jobs numbers were indeed a surprise, but I wouldn't call it a full narrative shift yet for BoC. One data point doesn't always make a trend. Let's see how the inflation figures look next month before calling the dovish pivot off.