Either you’re right with shaking out everyone overly short the USD or we will see a huge rise in the price of Oil later on and/or tomorrow.
In the last couple of days USDCAD bounced anywhere between 50 - 120 pips before Oil took another leg up and USDCAD went south again. But nothing like what we are seeing today.
Tomorrow’s CAD retail sales will be important if the CAD plans to gain some momentum along with oil prices going up. I continue to be amazed by the rise in oil and equities, but going along for the ride.
I think Oil topped @81.72 for now. Oil is overbought. To much speculative money has gone into Oil, Gold and Equities. That bubble will burst very soon IMO.
77.46 minor support in Oil is still valid. That suggests another swing. Similar to the one we saw yesterday and today. Oil staying above 80.00 is a bit over the top @present.
Canadian “120 pips GDP rocket” news shot straight through 1.08 in USDCAD pair. UC & Oil Correlation is a bit out of whack for now but I reckon coming Sunday/Monday asian session will take care of that. I don’t see USDCAD’s 1.0750 area staying support for that long.
Quiet on the CAD economic data front until Thursday. The markets in general seem to be highly volatile recently without much trading sense…which is probably a good time to be on the sidelines. Very erratic day to day in the stock market also.
Just reading my previous post and took a look at the chart…doesn’t make sense. Meant to put a chart of oil . Light on the CAD economic data front for the rest of the week.
Sellers have been “marking down” usdcad for about 2 weeks. Smart buyers are keeping their ears to the ground and money in their pocket until the “sale” starts.