Instrument: CADJPY
Bullish Preference:
A buy position is envisaged if the price trades above 104.999 WithTake profit at 105.189
Bearish Preference:
A sell position is envisaged if the price trades below 104.595 with Take profit at 104.396
Fundamentals:
1:30PM CAD: CPI m/m
Median CPI y/y
Trimmed CPI y/y
Common CPI y/y
Comment:
Most Asian currencies kept to a tight range on Tuesday as concerns over slowing economic growth in China continued to weigh.The Bank of Canada is expected to lift rates by 0.25% to 5% on Wednesday after resuming rate hikes last month following a five-month hiatus. About 70% of traders are expecting the bank to lift rates on Wednesday. The expected hike comes as some suggest that a decision to not hike would revive bets on rate cuts and trigger an easing in financial conditions, undoing the BoC’s work so far and putting it in an uncomfortable position for months until the next rate decision in September.
Analysis: SCRUM Team