CAD/JPY: Major Technical Break

We have a major technical break in CAD/JPY this morning. The currency pair has broken below trend line support, the 50-day SMA and the 23.6% Fibonacci retracement of the year to date rally. Next stop could be 81.50. Lower oil prices are playing a big role in the move. Read all about it in my article today Currency Traders: All Eyes on Commodities

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Expectations for Central Bank Rate Cuts

Here is an update on central bank rate cut expectations:

Eurozone – 25bp rate cut expected on Thursday

U.K. – No rate cuts for the rest of the year, but watch out for comments on Quantitative Easing

Australia – Rates left unchanged last night. 2.50% expected to be the floor

New Zealand
– One more rate cut in June or July

U.S., Japan and Canada – No rate cuts for the rest of the year

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