CAD/JPY was the trade of the quarter
CAD was the top performer in Q1 while the yen lagged
The first quarter of 2021 is down to its final hours and that gives us a chance to take stock of the moves in the market. Q1 was lively, with some large overall moves led by oil and the vaccine rollout.
With that, CAD and GBP were the only currencies to best the US dollar, both by around 1%.
At the bottom of the pile were the yen and Swiss franc, down by a hefty 6.5% each. That's a reflection of the central bank divergences that are brewing as the old fashioned funders re-discover their place.
On net, CAD/JPY longs were the best trade and one I highlighted as it broke out in February (and again here). The pair gained 730 pips or more than 8% and touched a cycle high earlier today. Nearly all of those gains came after the start of February.
The weekly chart (above) is now showing some renewed momentum after two weeks of consolidation. Given that April is a great seasonal month for risk trades and the Canadian dollar, what's not to like?