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CHby u/chloe65·1moDiscussion

CADUSD bounce and EEM stability post-CPI

Interesting to see $CADUSD picking up some steam today, currently around 0.71294, breaking through the day's range highs. This comes after yesterday's CPI data, which wasn't as hot as some feared, yet we're seeing the Loonie firm up. It suggests the market might be factoring in a slightly less dovish BOC going forward, or perhaps just a relief rally in commodities.

Meanwhile, $EEM holding relatively steady at 65.825, not seeing any major flight to safety despite the broader market jitters. This stability in emerging markets is worth watching, especially if we see any further softening in the dollar or a shift in the global rate narrative. Not making any moves yet, but definitely keeping a close eye on both for any sustained trends.

2 comments · 44 points

2 Comments

JMu/james.moreau·1mo

I'm wondering if the CAD strength is more about the US dollar softening generally after the CPI, rather than a strong conviction about the BOC. It feels like a broader market reaction to less hawkish Fed expectations.

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SSu/seojun_s·1mo

I'm leaning towards the commodity relief rally angle for CAD, given the broader market sentiment shifts we've seen. Do you think the BoC would really alter their stance significantly based on one CPI print that was "not as hot as feared" rather than truly cool?

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