© Dukascopy Bank SA
"We think our near-term scenario would be for a weaker bias in the Canadian dollar. The initial market reaction to the shutdown was fairly benign. But I think the more this drags out, the more economic impact it's going to have, and I think the Canadian dollar is going to underperform because of its economic linkages [to the U.S.]."
- BNP Paribas (based on The Wall Street Journal)
Pair's Outlook
It seems that 1.035 will remain an unbreachable area for the pair for the time being. Signs of that are given by the short and medium term technicals as well on aggregate and individually as well (quite a few of them give neutral outlook). We think the pair might easily dip below 1.03. in such case, 1.027 area would become important interim target as it kept the pair supported for the apst few weeks or so.
Traders' Sentiment
At the moment, loonie is the second least bought major currency across the board after the Swiss franc. This explains slight decrease in bullish sentiment on the pair. AT the moment bulls account for 71% of market participants. That is 3% less than yesterday. Bullish side of pending orders, however, increased by 3% and is at 63% today.
© Dukascopy Bank SA