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Watching CAD/JPY post-BoC, anticipating further JPY weakness
The BoC meeting didn't surprise much, but the general market sentiment still feels like it's leaning towards sustained rate differentials against the JPY. With $MXNJPY currently up +0.24% at 9.25538, and seemingly wanting to push past the day's high of 9.26269, it makes me think about how much more room there is for carry trades to run, especially with the Fed still tight and other central banks not backing down easily. This makes me curious about how long the current setup can hold.
1 comments · 1 points
It's interesting you're focusing on CAD/JPY and JPY weakness. I've been watching other pairs, but your point about sustained rate differentials makes a lot of sense. Do you see any specific upcoming events that could change this outlook for the JPY?