CAD/JPY Faces A Risky Winter, But Upside Could Be Found As Canada Rebounds
CAD/JPY tumbled harshly in Q1 2020 on the back of collapsing risk sentiment and lower oil prices.However, while Canadian GDP growth sank more aggressively than Japan's, real yields are, in fact, stable, and oil prices are off their lows.While oil prices are struggling to gain further ground (still down by a third since the start of the year), a simply stable backdrop will support CAD.CAD has already regained its lost ground against USD. CAD/JPY may also return to its recent heights in 2019, yet the winter months must first pass.The world is currently facing a second wave of COVID-19. Longer term, there is plenty of reason to buy CAD/JPY. Near term, there are large risks.
Seekingalpha · 10/12 09:02