The jungle drums are having a row over what exactly is moving the loonie today. While I reported the M&A scuttlebut just now other voices are saying that the M&A story was out well before the moves and that while the Can Nat/Devon deal is cash based (so normally FX affected) such deals of this size are usually financed outside of the US and via cross currency swaps which usually mitigate any FX effects.
There are other whispers in the wind that the problems in the Ukraine are also to blame for the general rise in the dollar and that USD/CAD also popped 3 weeks ago on a surge in violence over there.
That’s why we say take this info with a pinch of salt. While most of the time we make an effort to give the markets view, sometimes no one has the foggiest idea what’s going on. It’s why we always recite the mantra just trade what you see and let the prices do the talking.
What’s the market saying?
In the meantime here is some useful info by way of the corporate order board.
Offers have been cleaned out at 1.1025, 1.1050 but there’s more to go at 1.1080 and 1.1100 but not much on the size front
Bids are down at the lows around 1.0920 and are regular from there down.
Specs are on the offer also at 1.1080/90/100 with stops on a break of the big figure
