Forex Flash: What does USD/JPY do during Golden Week? - Nomura

TD Securities analysts say that the one constant seems to be the CAD under-performance, “with our currency at the bottom of the overnight performance league and gaining only marginally against the softer USD”. “This morning’s run of second-tier data from the US might not do that much to boost interest in our session so more range trading might be on the cards for the markets in the near-term. Commodity prices continue to stabilize and recover from the recent softness but it is the tone of the US equity market that is once again providing the strongest “pull” for the CAD from a correlation point of view”, wrote analysts Shaun Osborne and Greg Moore, adding that the Loonie remains highly sensitive to the risk environment and “we remain somewhat concerned that the recent positive run in risk assets is susceptible to a (seasonal) reversal”. The USD/CAD constant failure at 1.0290 robs some short-term momentum and risks slipping back to the upper 1.01 area on a drop below 1.0230/35”. “We still rather look for limited downside and support in the low 1.02 area top hold for now (40-day MA at 1.0219)”, they concluded.