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"The interest rates market appears to be pricing in about 30 percent chance of the Bank of Canada dropping its tightening policy bias. If the bank sticks to a tightening bias, there will be a huge gain in the Canadian dollar."
- Western bank (based on CNBC)
Pair's Outlook
Pair has been testing the strength of the weekly PP and, consequentially, 1.03 area this whole week. Although daily technicals point at appreciation of the pair, the Stochastic indicator on weekly and monthly outlook and reasonable, taking in to the account the overall moods in the market, bearish sentiment suggest that pair might not be quite ready to advance above 1.03 as there is no catalyst to start such a move.
Traders' Sentiment
Share of bears in the market is remaining rather stable—they account for 56% of all market participants. Pending orders are completely on the opposite, 61% of them are to buy the greenback versus its northern counterpart.
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