© Dukascopy Bank SA
"It's kind of an attractive vehicle, when it weakens 2, 3 percent, people like to take a shot at buying the bonds. The Canadian gross domestic product was a little buoyant yesterday. It kind of was at the high end of everybody's expectations, so I think that helped."
- Canadian Imperial Bank of Commerce (based on Bloomberg)
Pair's Outlook
It seems the pair has stabilized around September high after yesterday's sell off. We do not expect to see a sudden recovery to the previous levels as 1.05 seems to be a very strong technical level. Cluster of technicals around 1.040 should hold as well. All in all, the pair should be somewhat range bound between 1.04 and 1.05 for some time.
Traders' Sentiment
Canadian dollar is the second most sold major currency across the board. As greenback is bought in 61% of all cases it weighs on the market sentiment heavily since 73% of all open positions are long on the pair. In Addition to this 60% of pending orders are set in the favour of the bulls as well.
© Dukascopy Bank SA