Canadian Dollar Outlook: Key USD/CAD, CAD/JPY Levels to Watch
2021-02-10 12:00:00
Justin McQueen,
Analyst
CAD/JPY | Bullish Momentum Persists
USD/CAD | Rising Oil Prices Underpins CAD Gains
Last week had largely been characterised as a sell the rally bias with the 1.2850-70 area capping upside. Alongside this, with the weak Canadian jobs report quickly shrugged off, momentum has once again shifted to the downside. Brent crude futures have continued its impressive run with prices above $61, which is likely to keep the Loonie underpinned and thus makes the currency among the preferred choices for a renewed USD bearish trade. On the downside, support is situated at 1.2620-25 with the YTD low at 1.2586.
Canadian Dollar Outlook: Key USD/CAD, CAD/JPY Levels to Watch 2021-01-12 12:00:00 Justin McQueen, Analyst
CAD/JPY | Facing Long-Term Resistance
Canadian Dollar Tracking Risk Sentiment and Oil Prices
The Bank of Canada Business Outlook Survey continued to show a recovery in business sentiment from the near-record lows with optimism largely stemming from advances in vaccine developments. However, this is in contrast to the deterioration in the labour market, as evidenced by Friday’s jobs report. That said, in the short-run, the Canadian Dollar will continue to track risk sentiment and oil prices, which have broken out to fresh multi-month highs.