CAD/JPY: Fundamental Review & Forecast

The pandemic won't let the CAD rise up. The deals to SELL seem the most effective.

Fundamental Analysis
2020年10月21日

The uptrend lost its intensity in September, although it may still recover. The support line is still pointing up, while the resistance line is turning in the opposite direction. Does the Canadian dollar have a chance to recover against the yen? There are chances, but it will not be easy.

Oil prices are the main factor holding back the Canadian dollar. So far, oil remains above $40, but given the development of the pandemic, the demand for oil will be limited. At the moment, the market is on the verge of oversupply amid growing reserves in the United States and increased extraction in Libya. At the same time, many countries are now one step away from the decision to resume the lockdown on their territory due to a record increase in the incidence of infections.

Risk assets were supported this week by news of good perspectives for the adoption of a stimulus package for the US economy, which is also key for neighboring Canada, which exports a lot of products to the US. However, fears of a pandemic do not motivate investors to buy risky assets.

We believe that in the current situation, the deals to SELL will be the most promising in the medium term. Given the limited growth in oil prices and many risks for the global economy, the yen will become a more attractive asset compared to the Canadian dollar.

Stanislav Litinskyi

Fundamental Analysis

NZD/USD: Fundamental Review & Forecast

The maximum seems to have been achieved. The deals to SELL seem the most promising in the medium term.

Stanislav Litinskyi
2020年10月16日
USD/CAD: Fundamental Review & Forecast

Fundamental Analysis

USD/CAD: Fundamental Review & Forecast

Commodity assets are in demand this week. US elections affect the rates.

Stanislav Litinskyi
2020年10月09日

Fundamental Analysis

GBP/JPY: Fundamental Review and Forecast

Further growth seems very limited. We choose the deals to SELL for today.

Stanislav Litinskyi
2020年10月07日