Westpac: Sell CAD/JPY: looking for another leg lower as risk appetite eases

Entry: Sell 100% at 84.30, Stop: 84.90, Target: 82.00

Rationale:

  • Canada’s growth pulse appears to have firmed, some notable data points such as jobs and retail sales comfortably beating expectations. But, the turnaround in the complexion of Canada’s data has been such that our surprise index for Canada has hit unsustainable 5yr+ highs.
  • Energy prices have now fallen 13% from their highs too and key equity indices have rolled, pointing to a long overdue correction/consolidation in risk appetite.
  • CAD/JPY looks vulnerable to ongoing downside pressure amid the aforementioned risks. Given the very fluid backdrop for risk appetite at the moment we will actively reassess the prospects for this trade as it evolves. The US House vote on a new health care bill (Thursday) will be an important barometer for risk appetite. Canada’s Feb CPI (Friday) is also a key risk to watch.

Marketing communication : This document has not been developed in accordance with legal requirements designed to promote the independence of investment research and its author(s) is/are not subject to any prohibition on dealing in the relevant financial instrument ahead of the dissemination of the marketing communication.

Quintessence Insights offers a small sample of the research available live on Quintessence Insider.
To access Quintessence Insider now 

Quintessence Signals

Special promotion for a limited time 

Yearly offer

25€/monthly for yearly subscription

6 month offer

40€/monthly for 6 month subscriptions

1 week free trial of Quintessence Signals is available with all offerings

6 Months

240Or 40€ monthly
  • 594€
  • 1 week Free trial
  • QuintessenceFX Signals
  • Hedge fund quality forex Signals
  • Institutional sell side Signals
  • major banks trade recommendations
  • whatsapp live notifications

Yearly

360Or 30€ monthly
  • 1188€
  • 1 week Free trial
  • QuintessenceFX Signals
  • Hedge fund quality forex Signals
  • Institutional sell side Signals
  • major banks trade recommendations
  • whatsapp live notifications

Nomura – EUR versus the Antipodeans

Read More

Barclays – UK Surprise: GBP lustre lost

Read More

Barclays UK Election – Summary of Views

Read More

Deutsche Special Report – UK election night preview

Read More

Related posts:

%d bloggers like this: