Do to recent Macro economic events $USDCAD rebound looks to have stalled under the 40-day MA. Since the Fed has started cutting this spring, the greenback has faired well against the basket, perhaps even outperforming it’s underlying fundamentals. Investors Flock to the USD and other “safe heaven” currencies every time risk-off sentiment flares up. In theory, issuing money cheaper should depreciate the USD, however other central banks have followed their Feds lead apart from Canada and Norway. Allowing the USD to remain strong against the basket. On a (DXY basis)
The Canadian economy seems to be firing on all cylinders, with a number of provinces improving upon the debt and deficit trajectories outlined in their spring budgets. Real estate markets are hot with average prices up 4.4 % y/y and sales activity up 15.5 % y/y! The Canadian central bank has taken these readings in stride by leaving the policy rate unchanged at 1.75%.
Fenix likes the upside for the Loonie against the USD.
The Canadian economy seems to be firing on all cylinders, with a number of provinces improving upon the debt and deficit trajectories outlined in their spring budgets. Real estate markets are hot with average prices up 4.4 % y/y and sales activity up 15.5 % y/y! The Canadian central bank has taken these readings in stride by leaving the policy rate unchanged at 1.75%.
Fenix likes the upside for the Loonie against the USD.