I Bought More CAD When Bank Of Canada Pushed It Down

ANALYSIS | 12/07/2017 02:19:24 GMT

Bank Of Canada signaled caution while kept rate unchanged which was exactly the same action they did in the last meeting. Market sold off CAD because the anticipation for hawkish statement had not happened. Yet, this was a typical reaction which offered a good opportunity to buy more CAD as the underlying fundamental strength for CAD is still going strong.

AUD suffered another blow today with a miss on the GDP q/q last Asian Session, to a risk-off sentiment today throughout the London and New York session, only to have another miss on the Trade Balance data. Do you see the fundamental & sentimental bias?

I do, that’s why I took an AUD/CAD short today. With the market still expects a BOC rate hike in early 2018 while the expectation for RBA rate hike has pushed back to 2019, meanwhile, the oil market recovery has benefited both currencies and the risk sentiment will also be hedged out in these 2 commodity-linked currencies, this is a good safe bet.

USD/CAD also jumped up because of the BOC event today. We’re still safe for now with this trade, unless the NFP provides a good Average Hourly Earning, with the current expectation of 0.3% V.S 0% previously. That will our biggest risk to carry this trade through the event. Take a look at Today’s Video to see our other Live Trades.

Share: Analysis feed

Enho Kuo is NOT a Broker Dealer and engages in trader education and training. All materials given by Enho Kuo are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decision you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs. This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by Enho Kuo or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.