Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Day trade
Trade view / 29 July 2014 at 11:49 GMT

UPDATE: BoC doesn't like the loonie and neither should you

FX Trade Strategist /
Instrument: USDCAD
Price target:
Market price:

The original trade Idea expected that any Canadian dollar gains from a strong CPI report would be fleeting, as was the case. Yet, the CPI data enabled the second leg of the trade to be triggered and the all-in average rate for the long USDCAD position became 1.0725. USDCAD has struggled to gain momentum above 1.0820. Wednesday's Federal Open Market Committee meeting and US GDP plus Friday's US employment data, risk disappointing markets resulting in a US dollar sell off.  It makes sense to sell 1/2 of the position at the current market (1.0810) and raise the stop loss on the balance to 1.0775 guaranteeing a minimum profit of 0.0065 points on trade.

Original Parameters

Entry:  buy 1/2 USDCAD at market (currently 1.0740), balance at 1.0710.

Stop: 1.0660.

Target: 1.0875.

Time horizon:  3 weeks.

— Edited by Martin O'Rourke

Non-independent investment research
This investment research has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Further it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Saxo Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. » Read more
Michael O'Neill Michael O'Neill
FINAL UPDATE: Trade objective achieved. Close trade for gain of between .0120 -0.0135 points.


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