USD/CAD with the usual knee-jerk

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USD/CAD sold off quickly after rising to 0.9951 on the soft GDP report and lower US personal spending.

It’s typical for moves of Canadian economic data to quickly fade, especially a backward-looking indicator like GDP.

Yesterday, a similar spike reversal continued 50 pips lower. Together the drops show strong demand to sell USD/CAD.

Author: Adam Button

Adam Button is the managing editor of ForexLiveâ„¢. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.


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canadian dollar|USD/CAD

Adam Button


  1. Even the sell offs in EUR and AUD earlier had little effect on the CAD

  2. Actually i followed one of your trade ideas some time ago and sold above parity, was wondering if you see more potential for downside as 0.91/2 is proving a hard nut to crack probably in some ways lifted by the dollar strength

  3. It’s a tough pair to make money on because the volatility is so low. That said, I think the downside eventually wins out. My trade for the next two weeks is to wait for the Nexen decision and go with it.

  4. Thanks Adam, don’t usually deal with cad but glad this one worked out well


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