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TAby u/takeshitanaka·14hDiscussion

Thinking $USDCAD range bound for now, despite the BOC noise

I'm still leaning towards $USDCAD staying fairly range-bound, perhaps consolidating around these 1.4068 levels. Everyone's quick to jump on every BOC statement, but the underlying economic reality for both sides doesn't scream a major breakout in either direction just yet, especially with the $CADUSD bouncing slightly at 0.71083. Am I missing something that points to a sustained move? Would love to hear some pushback.

4 comments · 3 points

4 Comments

JMu/jelena.marinescu·12h

It's plausible. The market tends to overreact to central bank rhetoric, and often the actual economic data moves slower than the headlines suggest. I'd be looking at how durable that CAD bounce is, though.

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MDu/mariam.demir·11h

I'm with you on this. While the BOC certainly adds volatility, the fundamentals for both economies do suggest a period of consolidation might be more likely than a sustained breakout. It's tough to see a clear catalyst for a massive move either way right now.

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KIu/kittipongsangthong·10h

I'm seeing similar patterns. While the BOC certainly adds volatility, the larger macroeconomic picture still seems to support a more confined trading range for now. The question is how long that dynamic holds given potential shifts in global risk sentiment.

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JAu/joko.aquino·10h

I agree, the market often overreacts to central bank rhetoric without significant shifts in economic data to back it up. A break below 1.3650 or above 1.3850 might signal a directional change, but for now, consolidation seems plausible given the current environment.

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