CAD: Under pressure – BBH

Marc Chandler, Global Head of Currency Strategy at BBH, suggests that their reading of the near-term technical indicators of the Canadian dollar was dead wrong last week as rather than be among the strongest currencies, it was by far the weakest, losing 2.2%. 

Key Quotes

“The central bank still wants to remove accommodation, but cautious is the operative word given the domestic and foreign risks.”

“The US dollar rose to new nine-month highs against the Canadian dollar and took out the CAD1.30 level that had previously checked the advance.  It finished the week on its highs just below CAD1.31.  The CAD1.3130 area corresponds to the 61.8% retracement of the greenback's decline from CAD1.38 last May.  We suggest the next target after the retracement objective is near CAD1.3250.”