CADJPY Breaks Out
The recent breakout trade in CADJPY has hit its first target at 94.06. With the retail market heavily short the pair and with both MACD and RSI firmly bullish, there is plenty of room for the pair to continue higher here with the next upside target at 96.30. The bounce in crude oil this week is helping lift CAD sentiment along with the broad pick up in risk appetite which has taken hold over the back end of the week.
Keep An Eye On
The main data focus over today’s US session will the release of Canadian Retail Sales data for February. The BOC recently kicked off its tightening operation, ahead of the Fed. As such, there is a great deal of hawkish expectations baked into the CAD view. This perspective has been reinforced by the recent surge in oil prices. Indeed, with the current correction in crude looking to have found support, suggesting there is further upside to come. With this in mind, a strong set of data today should put CAD in further demand, refreshing the focus on BOC tightening expectations as we head into Q2.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.