© Dukascopy Bank SA
"Wages are higher in Canadian dollars than they are in U.S. dollars, rents are higher, utility bills are higher, property taxes are higher, so a lot of the costs are in local dollars that won't adjust instantaneously with the movement in the currency."
- BMO (based on CBC)
Pair's Outlook
Pair keeps struggling to consolidate above 1.039. At the moment it seems that fare share of pressure is coming from the 1.043 and the pair should advance above it if it wants to continue the recovery. That would put 1.05 on the map. In case the pair fails here, we should expect it to trail to 200-day SMA at 1.0315. Failure there could give needed impetus for the pairs and allow them to push it to 1.018.
Traders' Sentiment
Situation in the market remains highly in favour for the bulls. Long traders account for 75% of market participants today. That is 4% more than yesterday. Bullish side of pending orders increased by 5% and is at 66% gauge today.
© Dukascopy Bank SA