CAD in focus
The CAD is in a neutral mode at the moment as traders try to figure out why the BoC's next move is. The only major central bank not to turn explicitly dovish, the market is waiting for one of two things:
1. A run of data which show either a bullish or bearish tilt
2. Rhetoric from the Bank indicating a dovish or hawkish twist
I am looking out for a dovish twist from the BoC to prompt CAD selling. The data from CAD lately has been a flat GDP reading and last week's PMI's showing some weakness. Employment data is out toady, so that will form part of the picture on the data front. It is also worth mentioning that CAD is impacted by the oil markets and US oil has around a 95+% inverse correlation with USD/CAD. When oil is up, USDCAD is pressured. When oil is down, USDCAD is buoyed.
