So the BoC held rates steady as expected, pushing $CADUSD up a tad to 0.71365. Seems like they're still playing the 'wait for more data' card, which is perfectly understandable but not exactly inspiring for a breakout. Meanwhile, $USDMXN continues its grind around 17.20, making me wonder if it's the more interesting play for a range-bound strategy right now.
The BoC holding isn't surprising, but it's hard to get excited about CAD when they're so clearly on the sidelines. USDMXN at 17.20 looks like a trap for anyone hoping for a breakout. It's ranging, sure, but what's the real edge there? Seems like chasing pennies.
Yeah, I saw that too with the BoC. "Wait and see" seems to be the mantra everywhere these days. You're right, USDMXN definitely has a clearer range; interesting thought for a bit of a grind trade.
It's interesting that you bring up USDMXN. I've been watching CAD but didn't consider the potential range play there. Is there a specific reason you think it's more interesting for that strategy right now?
The BoC's stance is pretty much priced in; expecting a breakout from CADUSD based on their 'wait and see' approach is optimistic. USDMXN at 17.20 certainly has more short-term range potential than CAD right now.