While Adam’s still gloating over Canada beating Great Britain at some stone chucking sport on ice, the market chatter is that the rise in USD/CAD has been helped along by Canadian Natural Resources buying around $2.8bn of US natural gas assets via Devon Energy. Devon are said to be selling up various parts to focus on shale.
The pair has been on a virtual one way losing streak for the last 14 days with only 4 very weak daily gains in that time.
USD/CAD daily chart
The 50 fib of the Jan swing up caught the falls at just under 1.0912 and so far the 38.2 fib and former support around 1.1030 have capped the gains, although we are breaking through as I type. The 50 fib of this move is at 1.1066.
Risk is back on this afternoon and is painting a different picture from how we entered the session.
