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"An adjustment in rates markets to reflect a near-term hike should coincide with a limited, but significant, adjustment higher in the dollar."
– BNP Paribas (based on Bloomberg)
Pair's Outlook
The US Dollar is falling against the Canadian Dollar, as the 100-day simple moving average, which was located at 1.2926 mid-Friday, finally pressured the currency exchange rate to fall. This is the long awaited move of the rate, as it was bouncing between two levels previously. Now it is clear, that the Greenback is going down to at least the weekly PP at 1.2870, and most likely it will be pressured even lower, to the monthly S1 at 1.2832, as the 100-day and other SMAs continue to move lower together with the exchange rate.
Traders' Sentiment
Trader sentiment is bullish on Friday, as 56% of open positions are long. In the meantime, pending orders are also bullish, as 66% of open commands are long.
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