Listen to the latest market mood for the CADJPY pair.
Asian equity markets traded mainly positively over night and US equity futures are up overnight too amid a global slowdown in the number of COVID19 cases. Although note that the volumes in these stock recoveries are low, so the jury is out whether these are actual bottoms in these markets.
However, the positive risk tone will weaken the JPY during today’s session as long as equity markets remain supported.
The CAD should be supported on continued hopes of an OPEC+ meeting this Thursday with Russia said to be ready to discuss substantial oil production cuts. This news supports oil prices which have remained bid all week and therefore supports the oil export driven CAD.
- Expect buyers on pullback on CADJPY.
- Outlook: We expect this outlook to play out today.
- Trade Risks: The main risk to this set up remains to be any negative coronavirus news which would send the market back into a risk off mood and weaken CAD and strengthen JPY.