Watching CAD Strength into CPI
The recent movement in $EURCAD has been interesting to say the least, especially seeing it dip to 1.6049 today, trading pretty tight within its daily range. We’ve seen some decent CAD strength building, which I think is a reflection of the market perhaps bracing for a more hawkish tone from the BoC or at least better-than-expected CPI numbers coming out soon. It's not a massive move, but the consistent pressure downwards after testing slightly higher levels does suggest underlying sentiment is shifting.
I'm not jumping in yet, but this dynamic is definitely on my watchlist for potential plays against the CAD, particularly if we get a surprise in the upcoming CPI data. If the numbers come in hotter than expected, I could see that 1.60367 support level being a key area to watch for a break, potentially signaling further CAD appreciation. Conversely, a soft CPI might give us a bounce back towards the higher end of today's range. Positioning now feels premature without that data, but the setup is intriguing.
It's a reasonable read on CAD's recent strength. The market often front-runs potential policy shifts, and the BoC has been clearer about its inflation fight. I'm curious if you're seeing similar setups against other majors, or if EURCAD is standing out particularly for you.