The Canadian dollar has rallied a bit during the trading session on Wednesday to show signs of life again, as we are now threatening the ¥105 level. Furthermore, the 50-Day EMA is sitting right around the same level as well, so I think it’s probably only a matter of time before we see a bit of a fight on our hands.
Factors to Keep in Mind
- The oil markets because we do see some type of recovery in the oil markets, which obviously helps the Canadian dollar.
- Most of the effort in this market will probably come from the Japanese side of the equation.
- The Bank of Japan continues to fight to keep the 10-year yield in that country down to 0.25%, which is a Herculean effort, to say the least as interest rates around the world have been rising.