Forex Investment and Currency Trading

The CAD retains a defensive tone overall, with “growth” currencies generally weaker on the session so far following the release of some mixed Chinese data earlier; the Chinese connection remains strong for the CAD today, with Finance Minister Flaherty and BoC Governor Carney visiting Beijing for talks with local officials. Mr Carney addresses the Canadian Financial Forum this evening, though one suspects that the location does not lend itself to a particularly strong message on the CAD being delivered. While the CAD held up relatively well yesterday, pressure on the AUD and, more especially, the Kiwi, as well as stop-loss USD/CAD [...]

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USD/CAD’s sharp turn lower over the course of the past two days looks poised to extend a little further in the short term at least; and from a broader point of view, it looks very much as if this week’s gains will draw a line under the CAD’s recent under performance. Better data flow of late (and the BoC’s survey results showing a stronger business outlook and easier credit conditions – dousing the last vestiges of speculation of additional BoC policy support – in particular) should underpin CAD sentiment, with firmer commodity prices adding to short term momentum at least. [...]

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USD/CAD is looking quite vulnerable to the downside once again – which is quite the change of tune for this market after yesterday’s run up through the upper 1.12 zone. The rebound since Friday has barely made any sort of real impression on the major retracement zone of resistance and the failure to hold the break through trend resistance yesterday suggests that the underlying trend is lower still. The market is already leaning quite hard on the base of the upward channel that has guided price higher since late last week – a bear flag – and a clear break [...]

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USD/CAD’s sell off was starting to look like it was losing momentum late yesterday, when the CAD was showing the first real signs of potential softness against the big dollar in a while. The USD popped up through the upper 1.09 area overnight before slipping back again; the broader trend against the currency remains deeply entrenched still and corrections remain very shallow and short-lived. Firm commodities should give the CAD a little short term support sentiment-wise a least and the press is noting that with oil prices firming again, some tar-sands projects are looking viable once more. This will be [...]

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