Canadian Dollar Forecast: Loonie Maintains Bullish Flight Path - Setups in CAD/JPY, USD/CAD
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Canadian Dollar Outlook:
The Canadian Dollar has had a rocky start to the week, with all of the gains on Monday wiped out by the end of trading on Tuesday.
But resolutions in favor of more CAD strength are still sought after in CAD/JPY and USD/CAD rates as consolidations remain in place.
According to the IG Client Sentiment Index, USD/CAD rates have a near-term bullish bias.
Canadian Dollar Encounters Turbulence
After clocking in as the best performing major currency in March, the Canadian Dollar’s start to April is lacking. The gains on Monday were wiped out by end of trading on Tuesday. But since we last checked in at the end of both March and 1Q’21, not much has changed: the Bank of Canada doesn’t meet again until April 21, and generally improving Canadian economic data (via the Citi Economic Surprise Index for Canada) has left rates markets with a relatively hawkish hue (compared to, say, three months ago).