Long CAD/JPY as Interest Rate Differential Begins to Bite: Top Trade Q1 2022

From dailyfx.com

The coming year will see a raft of global central banks reversing their loose, pandemic monetary settings of the last two-years decisions and begin to normalize monetary policy by withdrawing emergency stimulus measures and hiking interest rates. Major central banks, including the Federal Reserve, the Bank of England, the Reserve Bank of Australia, and the Bank of Canada, have already given markets a strong heads-up about what is to come over the next few months. One central bank however that will not be raising interest rates is the Bank of Japan, even though their short-term policy rate sits 10 basis points in ... (full story)