Trial now

Cycle Highs In Sight For USD/JPY


Outlook Remains Bearish


(U1) Tilted Higher


Local Risk Eyed

FOREX: CAD crunched as door 'obviously' open to rate cuts
- USD/CAD bulls were rewarded Wednesday as the Bank of Canada erred particularly
dovishly despite holding rates alongside expectations. In the accompanying
statement the Bank dropped the word 'appropriate' in maintaining interest rates,
and growth forecasts were revised sharply lower. USD/CAD responded by rallying
sharply, finding little resistance at the C$1.31 handle before stalling just shy
of the 50-dma at C$1.3151. This becomes the next target for those looking for
further upside.
- GBP was the major outperformer, bouncing back as CBI trends data (not usually
such a market mover) was unusually optimistic. This raises a considerable upside
risk for this Friday's PMI print - also a sentiment based survey. Implied
probability of a BoE rate cut next week fell in tandem.
- Equity markets were more mixed, with a pullback in European bourses countered
by further strength in the US. This prompted USD/JPY to finish broadly flat. 
- Australian jobs, weekly jobless claims from the US and rate decisions from the
ECB and Norges Bank are due Thursday.