Trade view /
07 July 2016 at 11:05 GMT
We were stopped out of this USDCAD long position
after it initially showed some promise yesterday on a weak May trade balance data release from Canada and a much stronger than expected US June ISM non-manufacturing survey.
This should theoretically have supported the USDCAD rally, but a resurgence in general risk appetite late yesterday, together with dovish Federal Open Market Committee minutes and a market that seems to think that the good US data has no bearing on the near-term outlook for the Fed for now, saw the USD upside rapidly fading.
A strong US jobs report on Friday could alter the equation for the US dollar, but for now, we’re stuck back in the range in USDCAD and will have to reassess the outlook in coming sessions.
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more