The Loonie is on a tear this morning, building on gains in the commodities markets and a soft dollar across the board as risk assumption soars.
The Bank of Canada’s Carney is holding a press conference after the release of the monetary policy report. He says there is no change to the BOC’s hands-off intervention policy regarding FX but says that the strong CAD is acting as a brake on the economy. The persistence of CAD strength is what matters to the BOC, says Carney not the particular level from day to day.
This may make CAD longs a shade nervous as we reach the bottom of the recent USD/CAD range. We trade at 1.0850; we bottomed just below 1.08 in early June, if memory serves.
