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.
- 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.