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"It's really a pause in how incrementally dovish the bank has been in recent meetings. Even though GDP was a bit stronger than they envisioned, they still see exports as underperforming. Inflation was a bit stronger than they forecast, but they still don't see any change to the dynamics of intense retail competition and considerable excess slack."
- Toronto-Dominion Bank (based on Bloomberg)
Pair's Outlook
Pair failed at the weekly PP yesterday and today has trailed below the important psychological level at 1.10. it is unlikely we will see any major change before it hits 1.0922. It is rather doubtful even then we could see the pair's bearish bias disappearing. In case of an unexpected recovery, the pair should show a solid close above the weekly PP in order to neutralise most of this bearishness.
Traders' Sentiment
It seems that bulls are not willing to give up easily as at the moment they account for 69%, 3% more than yesterday, 11% more than few days ago, of traders. Beside that, long side of pending orders expanded by 30-35%, till 58-72% gauge.
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