Watching CADUSD as BoC Holds Rates, US Data Looms

Interesting move on $CADUSD today, up to 0.71762 and even hit 0.71777 at one point after the BoC held rates steady. The market was largely expecting it, but the commentary seemed to lean slightly more dovish than some anticipated, hinting at a potential cut further down the line if inflation keeps cooperating. You'd think a more dovish tone might weigh on the CAD, but it seems to have found some buying interest. Could be a bit of a relief rally that they didn't surprise with any hawkish language.

The next real test for this pair, for me, will be the upcoming US jobless claims and the PPI data later this week. If we see those US numbers come in softer than expected, it could give $CADUSD further room to run, especially with the rate differential narrative shifting. Conversely, strong US data could easily push it back down. I'm keeping an eye on whether it can consolidate above the 0.7150 mark. Not looking to jump in yet, just observing how the market digests these competing narratives and waiting for a clearer setup.