Quote from The Kin:
USd/Cad and Cad/Jpy have been my little secrect for a long time. Inflation is expected to soar above 4% in Canada due to the BoC pausing for about a year in an attempt to cool off a strong dollar. Looks like the dollar continued to soar anyway and inflation is starting to get ugly. I believe the BoC raised rates recently for the first time in 11 months. At the same time the fed reserve was rasing rates.
The BoC is starting to realize that it cannot cool the dollar thanks to oil, so it must now play catch-up with its U.S. counterpart.
Well, here it is, Saturday morning... having a "nice weekend," alright.... *ahem*
So CAD's been the sleeping dog, eh?
I worked out trading #s on USD/CAD and couldn't sanction a trade, or at least
owning CAD against the USD.
So I opened the USD/CAD long, selling the CAD as Ivan is doing. That's worked out fine.
This other pair CAD/JPY, though, well, we'll just have to wait and see if The Kin's scenario comes to pass. It's had a practical vertical climb from 83.12 to 97.91, almost 1500-points one way.
Says a lot.
The yen is still a larger economic player than Canada, and once (if) Japan finally shakes off their lethargy and/or their financial mechanics or their eco #s change somehow, to where they actually start making the yen and Japan-based financial instruments attractive to global investors, then watch out because the yen will come roaring back, possibly crushing both CAD and USD. At least for a while.
As it stands, Japan is the number 3 economy after the US and Europe, isn't that right?
So it won't take much for the world to start having confidence in the yen and Japan-backed money products: That would mean a climbing yen.
The Kin, were you long CAD against the yen since April, i.e., did you put the full 1500-pt trend in your pocket?
Where do you see CAD/JPY going now, up further?
