Forex Investment and Currency Trading

Overnight Spot Trading Activity: Limited Retracement for USD/CAD
Asia: Yesterday’s pullback in USD/CAD lost momentum near 1.0155/60 overnight as sales of CAD/JPY triggered a rebound to 1.0200. There were limited deal flows during the Asian trading session, with an early attempt to take out the North American low at 1.0150 failing (low 1.0160). Interbank short covering [...]

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CAD 1 – 3 Month Outlook
The end-Q3 USD/CAD target is revised to 1.03 from 1.05 prompted by persistent high oil prices and the BoC’s decision to leave rates unchanged. Strong portfolio inflows and the failure of a broad-based USD recovery further supported the revise.
Crude oil remains stubbornly high and momentum continues to favour higher rather [...]

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Canadian industrial prices (IPPI) for May provided further confirmation that the BoC would not mind a little more CAD strength. With US factory prices another inflationary headache for the Fed, Canadian factory prices have been well contained by past CAD strength. Even so, as CAD peaked in early November, factory price deflation troughed in October [...]

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