USD/CAD goes from strength to strength and the fundamentals fully justify the current levels, which broke out again and printed a higher high

Chris Weston

Pepperstone

USD/CAD goes from strength to strength and the fundamentals fully justify the current levels, which broke out again and printed a higher high. The pair now trades at the highest level since May 2010, with the US trade deficit shrinking significantly and thus putting upside risks to the final Q4 GDP print. On the other hand we saw Canadian trade balance blow out to C$940 million, with expectations of c$100 million. Traders will now be eyeing a break of the May 2010 high of 1.0853, although 1.0824 may be tough to break as well. Given the strong underlying trend buying pullbacks is the preferred strategy. USD bulls will be keen to see a strong ADP private sector payrolls report tonight at 00:15 (consensus of 200,000 jobs), as well as the FOMC minutes which will shed further light on the recent decision to taper it bond purchases.


Chris Weston
Head of Research
Pepperstone

Highly accomplished financial markets professional, with experience at a number of top-tier global institutions on both the buy and sell-side. A natural communicator with a strong ability to analyse macro-economic trends, capital flows and market...

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