Listen to the latest market mood for the CADJPY pair.

Weak CAD, Strong JPY

The Japanese Yen should bid on rising concerns over the increase in COVID-19 cases in the US and the fallout from Facebook advertising.

This has weakened Asian stock markets to start the week. The Nikkei is down -2.00%, Hang Seng -1.35%, and Shanghai Comp -0.90%. These risk-off tones should support the JPY during the session.
Oil markets are also down during the session as rising COVID-19 cases have hit oil demand levels. Due to CAD’s close connection with oil, this should keep CAD pressured on the day.

Therefore, expect CADJPY sellers on pullbacks today.

Day – We expect this trade to play out between now and the end of the US session. However, the trade will remain valid for as long as its underlying factors remain valid.

Trade Risks

• Any positive news for oil will strengthen CAD and invalidate this outlook.
• If we see a swift fall in COVID-19 cases that will also invalidate this outlook.