No clear winner this week so far. Yen trades generally higher today. But that’s mainly because rebound in Yen crosses lost steam. While Euro is strongest for the week, there is not much follow through buying.
Nonetheless. CAD is the clear loser so far, as the weakest for the week and stays pressured today.
BoC rate decision is a focus later today. Based on uncertainty around NAFTA and Trump’s steel and aluminum tariffs, there is practically no chance for another hike today. And, further, there is little chance for BoC to sound anything but cautious.
EUR/CAD is a pair to watch today as it’s set to take on 1.6103 key resistance (2016 high). Firm break there will resume long term rebound from 2012 low at 1.2126. Next medium term target will be 161.8% projection of 1.3782 to 1.5257 from 1.4441 at 1.6828.
