[Calxy]

USD/CAD – No dip back to the mid 1.07s, just onwards and upwards for funds over the past 24 hours or so; the break above1.0850 resistance propelled the USD quickly through to the initial upside target of 1.0950, with the secondary target of 1.1050 noted yesterday (38.2% retracement of the 1.17/1.06 move lower) almost reached as well. The move above 1.0850 (taking us to neutral) has injected a little more vigor into the USD rally though we are not convinced that the market has that much more in it from here. Upside risks remain but we think the 1.11/1.12 will be more attractive entry points for shorts. Minor support at 1.0980 intraday may see more of today’s gains unwind if broken ahead of today’s close.