Reason: Widening yield differential between Canadian and U.S. short-term interest rates. As the U.S. economy outperforms Canada, with stronger GDP growth and robust employment data, this yield gap has reached new highs, attracting capital flows into USD assets over CAD. In addition, the Bank of Canada (BoC) is signaling a potential rate cut as early as December, which would likely further weaken the CAD by making Canadian assets less attractive to investors. This, combined with the likelihood of continued U.S. economic resilience, sets the stage for USD/CAD to test higher levels, potentially approaching 1.40 if the BoC leans into a dovish stance.

Strategy Overview: After years of being a discretionary trader, I’ve automated my strategy to generate signals automatically and opened it to the public now. I no longer need to manually search for trades. I use data analysis and methods to identify and capitalize on market opportunities.

Risk Management: I only risk up to 1% of my total balance on each trade. This strategy minimizes losses and keeps my portfolio stable, even when market conditions change.

Join the Journey: If you like what you see, come along on this journey and give me a follow so you don’t miss any trades that my system may generate. But keep in mind, there might not be trades every day!

Long USDCAD

Nov 01 2024