The CFTC Commitments of Traders report will be out at the bottom of the hour. One of the focuses will be the Canadian dollar after it fell to a four-year low this week. The net speculative position was -60.5K in last week’s report but expect that to extend toward the 2013 extreme of -75.9K.
A big bearish position against CAD highlights the risk of a retracement if the Bank of Canada doesn’t shift to a dovish position. Before the announcement we could also see position squaring. I like AUD/CAD shorts and think the loonie could bounce broadly next week.
