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"Too candid a recognition that deflation is less of a threat could see unwanted upward pressure on the currency," he said, which could crimp export growth."
- CIBC World Markets (based on Bloomberg)
Pair's Outlook
Today the pair struggled to break the 100-day SMA at 1.0987, even though yesterday the currency pair broke this resistance level. The daily technical indicators are strongly bearish; although, we expect the greenback to remain above the monthly S1 at 1.0912, which has been breached only once this year. To our mind the pair is forming an uptrend and it should consolidate above the 100-day SMA.
Traders' Sentiment
At the moment of writing 70% of the SWFX market participants are expecting the U.S. currency to lose value against Canada's peer. The distribution between the buy and sell orders is much more stable—they are fifty-fifty.
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