Today we are reviewing a very interesting and underrated CAD/JPY currency pair. Investors are interested because, despite the global turmoil, interest rates have remained reasonably stable. Moreover, if we look closely at the chart, we will see that during February-March, volatility fell despite all the instability and panic prevailing on the market. The upward trend began in the of year 2020. It was also a very difficult time when everyone was shocked by the onset of the pandemic, but the result was a normal uptrend without any extraordinary ups and downs. As a result, traders who bet on the Canadian dollar made a tidy return, and the currency managed to maintain its stability despite its dependence on volatile oil.
A week ago, oil rates reached a record price of $ 128 per barrel, then fell to $ 97. For the Canadian economy, this is a great price and the perspective of exporting more oil. It is safe to say that this such a limited falling is that all traders and oil exporting countries dream of. The decline has certainly affected the cost of CAD today, and the outbreak of Covid in China has supported the safe yen a bit.
Despite the short-term success of the JPY, we still see the undeniable advantage of the Canadian dollar in this confrontation. CAD benefits from the economic component, in addition to rising oil prices. According to recent reports, In the previous 17 months, the Canadian economy has produced the most employment, the unemployment rate is the lowest on record in February, and rising inflation motivates the Bank of Canada to consider the possibility of new increases in the rate. In a word, the economy is on the rise and there are no consequences from the distant military conflict in Europe. Therefore, today we are buying the Canadian dollar, and technical analysis tools indicate the effectiveness of such deals in the long term.
Despite the short-term success of the JPY, we still see the undeniable advantage of the Canadian dollar in this confrontation. CAD benefits from the economic component, in addition to rising oil prices. According to recent reports, the Canadian economy has created the largest number of jobs in the last 17 months, the unemployment rate is the lowest on record in February, and rising inflation motivates the Bank of Canada to consider the possibility of new increases in the rate. In a word, the economy is on the rise and there are no consequences from the distant military conflict in Europe. Therefore, today we are buying the Canadian dollar, and technical analysis tools indicate the effectiveness of such deals in the long term.
