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- BMO Capital Markets (based on Reuters)
Pair's Outlook
As expected the US Dollar is very likely to hold its positions above the 1.15 levels and there is a rather high possibility that the pair could end the year even above the 1.16 mark. However, at the same time we are not expecting the pair to climb considerably higher, the high just as well could stay where it is now, namely 1.1675. The majority of the technical indicators are still bullish; although, a clear ‘buy' signals is given only by the weekly technicals.
Traders' Sentiment
An overwhelming majority of the SWFX market participants still consider the U.S. Dollar to be undervalued relative to Loonie. Right now 71% of traders are long the buck, while merely 29% of them believe the currency is going to give up.
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