Will the Bank of Canada keep raising rates? Attention on Canada employment statistics!

◎Strategy and Outlook

Canadian dollar buying strategy (looking for a buying opportunity)

Canada raised rates in October, making it the second-highest interest rate country after the United States. (Tied for 2nd place with New Zealand among the major 8 currencies)

Moreover, as a country with a rate-hiking trend, if expectations for further rate hikes rise, there could be another round of USD/CAD buying pressure.

CAD/JPY Timed Chart

CAD/JPY Daily Chart

In the hourly chart, prices appear to be rising within a parallel channel. Given hawkish statements after rate hikes, and strong economic data and remarks from key figures, the Canadian dollar remains firm.

Looking at the daily chart, after breaking upward from a converging triangle, it pulled back to test the rise. It seems the previous resistance line has become a support line (red horizontal line "85.500").

I think rate hikes are unlikely this year, but I will be watching for continued solid economic results in anticipation of rate hikes next year.

◎ Notable Indicators and Results for the Bank of Canada