Sell Overheated Loonie (May 2)Fundamentals & Sentiment
CAD:
- BOC has been successfully coping with inflation, with the latest Core CPI YoY posting 2%.
- The solid economic performance of Canada added urgency to hike rates until the target CPI has been achieved, so keeping rates high is becoming obsolete. There's still a decent potential to price in cuts until the next BOC rate decision.
CHF:
- Rate cut differential
Technical & Other
Setup: TR(B)
Setup timeframe: 4h
Trigger: 1h
Medium-term: Sideways
Long-term: Uptrend
Min target: DMA(50)
Risk: 0.25%
Entry: Market