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"What we're seeing is doubts about the sustainability of global growth come to the forefront. Doubts about the sustainability of U.S. growth could raise potential for Canada to suffer more of a downturn than we already are."
- Macquarie Capital Markets (based on Bloomberg)
Pair's Outlook
Lately it seems that greenback loonie cross has lost any drivers behind its movements as today it has been moving in even narrower range than yesterday, which does not exceed 20 pips. Although technical indicators point at appreciation of the pair, suggesting it should eventually test 1.03, attention should be paid to the fact that rather a few indicators give conclusive readings increasing the probability that pair will remain in rather narrow range for the time being.
Traders' Sentiment
At the moment the U.S. Dollar is more popular in the market than its northern counterpart, though the gap between the levels of their popularities appears to be decreasing, since the percentage of bulls on USD/CAD has fallen 2% compared to a yesterday's report. The ratio of buy-to-sell orders remains unchanged, 65% to 35%.
© Dukascopy Bank SA