USD/CAD is flat on the day at 1.0945 after reaching as high as 1.0991. Talk of huge barriers at 1.10 capped the move and led to some profit taking.
In late November, Goldman said to buy USD/CAD at 1.0550 with a target of 1.14 and FX analyst Thomas Stolper was out reaffirming his call today. So far so good in a rare win for the Vampire Squid.
I’m skeptical of fresh longs ahead of the BOC decision next Wednesday. More than anything, Poloz will be encouraged by generally positive signs from the US economy and that could even lead to an optimistic comment, which would quickly send USD/CAD below 1.09.
