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"Those fundamentals are strong relative to the rest of the world but there is also an element right now of a safe haven premium for the Canadian dollar. We can use it to grow our economy, invest it in new productive assets and industries, or we can build houses. Our view is we should do the former."
- Mark Carney, Bank of Canada Gov. (based on Bloomberg)
Pair's Outlook
Pair has been depreciating for third consecutive day now, but technical indicators on 1W outlook allow us to expect recovery of the pair starting from the next week. After breaching parity level pair has been losing momentum and it seems that weekly pivot of 0.9918 might be the barrier from which the pair will bounce off and try to return above the parity.
Traders' SentimentOverwhelming majority (75%) of traders currently hold long positions of the pair. In the ranges of 100 and 200 pips from current market price 65% of traders post buy orders. It is highly likely that today's better than expected US trade balance and worse than expected Canadian trade balance data had significant effect on this.
© Dukascopy Bank SA