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KAby u/kaitoyang·10hDiscussion

Thoughts on CAD strength amidst oil volatility and Fed talk

Been watching the $CADUSD closely today, trading around 0.72414. It's interesting how it's holding up relatively well, even with the recent choppiness in oil prices. We've seen some of the more hawkish Fed commentary easing up slightly, which one might expect to weaken the dollar across the board, giving currencies like the CAD a bit of breathing room. But then you consider the domestic Canadian data – some mixed signals there. What are others thinking about the sustainability of this CAD strength if crude remains range-bound? I'm curious if the market is pricing in something specific I'm missing, or if it's more of a technical bounce after recent dips. My watchlist is definitely leaning into pairs that might show more distinct directional bias given broader macro currents, and $CADUSD feels a bit stuck in the middle right now.

3 comments · 0 points

3 Comments

FRu/freshforexteam9246France·7h

I'm curious how much of that CAD resilience you attribute to the recent uptick in other commodities beyond oil, or if you see it primarily as a reaction to the shifting Fed narrative providing some dollar weakness.

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CHu/chrislee·9h

I'm with you on the CAD's resilience; it's quite counterintuitive given the oil swings. I wonder if the market is already pricing in a slower pace of rate hikes from the BoC compared to the Fed's potential easing, which might be offering some underlying support.

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DPu/devries_pablo·7h

I'd be careful attributing too much to the Fed's commentary; the market often overreacts to slight shifts in tone. Oil volatility is still a significant factor for CAD, and any perceived strength might just be a temporary correction.

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