CAD: Fade Strength On The Crosses; What’s The Trade? –

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The Canadian dollar is enjoying some backwind from oil prices. WTI is above $44 and USD/CAD slips under 1.32. What’s next?

Here is their view, courtesy of eFXnews:

Barclays Capital FX Strategy Research notes that after the recent BoC hawkish shift, markets will focus on remarks from the central banks officials to tease out the timing of any possible BoC action.

We believe expectations of impending tightening are premature and would fade CAD strength. We recommend short CADINR spot and short CADNZD through call spreads,” Barclays recommends.

In terms of this week’s data, Barclays notes that the main data release is the monthly GDP (Friday) in which Barclays forecasts this to have increased 0.25% in April (3.4% y/y), slowing its pace from last month (0.5% m/m).

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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