CAD/JPY: Fundamental Review & Forecast

Commodity currencies stand no chance. The deals to SELL are still the best.

Fundamental Analysis
2020年3月18日

The confrontation between commodity currencies and safe assets continues, in favor of the latter. The coronavirus leaves no chance for the CAD to strengthen. The situation is aggravated by the collapse on the oil market caused by the pandemic, its consequences for the global economy, as well as the conflict between OPEC and Russia, who could not agree to reduce oil extraction due to the current situation and falling demand.

On March 9, panic increased. Something similar had already been observed before the Great Depression of 1929. Therefore, it is likely that the new crisis will be more crushing and prolonged than the crisis of 2008. It is becoming increasingly clear that regardless of the duration of the coronavirus epidemic, the consequences for the global economy will be significant. Therefore, the demand for the yen is growing. The Canadian dollar was also under pressure on Friday after the Bank of Canada's decision to cut the rate by 50 pips, as well as due to the rapid fall in industrial production output in China, which leads to a decrease in the demand for raw materials.

In the current situation, we believe that the deals to SELL remain relevant. Most technical analysis tools confirm the efficiency of short deals in the short and long terms.

Stanislav Litinskyi

Fundamental Analysis

USD/CAD: Fundamental Review & Forecast

We are waiting for the price correction after achieving a 5-year maximum. The deals to SELL seem the most effective in the short term.

Stanislav Litinskyi
2020年3月13日

Fundamental Analysis

XAU/USD: Fundamental Review & Forecast

Safe assets are in demend due to the coronavirus. Waiting for a new testing of the $1700 level.

Stanislav Litinskyi
2020年3月11日

Fundamental Analysis

GBP/JPY: Fundamental Review & Forecast

Safe assets are still popular considering the spread of the virus in Europe. The deals to SELL are still effective.

Stanislav Litinskyi
2020年3月04日