- Poloz says: Canada may be able to have more growth without higher inflation”.
- CAD/JPY plunges 200 pips from the high of the day.
The CAD/JPY is trading lower at around 82.41 down 0.55% so far as Poloz gave his speech on the labor market and monetary policy.
The Bank of Canada Governor Stephen Poloz in his speech today said that “the monetary policy will remain particularly data-dependant”. He also said that the interest rates are “likely to move higher”, nothing new for the market here. However, more dovish comments such as: “Canada may be able to have more growth without higher inflation” made the Canadian Dollar weakened across the board.
Accentuating the CAD/JPY weakness is the relative Yen strength. Monday saw a political scandal in Japan, which triggered a flight to safety. Also, earlier on Tuesday, President Trump fired Rex Tillerson the Secretary of State, which also created demand for Yen, but to a lesser extent.
Coming up next are the meeting’s minutes from the Bank of Japan scheduled at 23.50 GMT on Tuesday.
CAD/JPY 4-hour chart
The CAD/JPY sold off after testing the 200-period SMA dynamic resistance close to 83.50. The market is now testing the 82.50 psychological level. Support is seen at the 82.00 figure and at the cyclical low just before 81.50. Resistance becomes then 83.50 which is Tuesday's high, followed by the 84.00 figure.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.