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"The currency market is mainly driven by short-term rate differentials, and ... the U.S. money-market curve is unlikely to steepen near-term."
- Danske Bank (based on MarketWatch)
Pair's Outlook
Just like at the very beginning of August USD/CAD is showing willingness to advance higher, but it also faces the same resistance that did not let the U.S. Dollar to stay on a bullish path, namely the monthly PP. Once this obstacle is out of the way, there will be no significant resistances until 1.0512 (monthly R1), and a scenario implied by the technicals will have a possibility to be materialised.
Traders' Sentiment
A considerable gap that exists between the long and short positions narrowed, being that the portion of the latter gained three percentage points. Nonetheless, an overwhelming majority (71%) of traders are betting that the buck is gong to strengthen relative to the loonie.
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