CAD off, JPY on

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=> Here we are tracking risk-off for the US mid term elections and using CADJPY as a strategic hedge.
=> This is because of Canada primarily funding its deficit through portfolio inflows and with tightening liquidity conditions we see less investment into Canada for the foreseeable future.
=> Later this month we have a BoC hike priced in as well as another 2 before May 2019.
=> To the other side higher oil prices and NAFTA risk cleared CAD looks poised to fall.
=> In this environment it's important to bring back CAD, AUD and NZD to the operating room as funding scarcity and tighter liquidity conditions will mean the USD rally won't be universal.
=> GL on this one guys, a very interesting call
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Beyond Technical AnalysisCADCADUSDcanadiandollarjpyTrend AnalysisUSDJPYWave Analysis

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