Listen to the latest market mood for the CADJPY pair:
The CAD has been weak on the dire outlook for oil. Falling demand, oversupply, and a Saudi price war have all weakened oil prices by around 45% this month. Canada with its heavy export oil economy will find CAD continuing to struggle. The Bank of Canada cut interest rates last week from 0.75% to 0.25%. They also spoke about the possibility of negative interest rates last week which invites further CAD sellers.
Once the market returns to a risk-off footing, which with the rapid spread of COVID-19 it should do soon, we can expect further JPY strength.
- Keep an eye on the latest coronavirus updates to measure risk.
- Expect sellers on pullbacks on CADJPY.
- We expect this outlook to play out over the next 2 weeks.
- The main risk to this set up remains to be any positive coronavirus news which would send the market back into a risk-on mood and JPY buyers will disappear.