Appetite for Canadian dollars evaporates after BOC cut
There are only two kinds of USD/CAD traders at the moment. Those who are already long, and those who want to buy.
The pair tried a test of the downside today but bidders arrived ahead of 1.2900. The BOC cut has sparked all kinds of talk about further moves and even some jitters about forward guidance or QE. That kind of talk is what drives long-term investors out of a currency and I expect to see that unfold in measured USD/CAD buying over the coming week.
Oil is a main driver of the pair and will continue to underpin moves but the upside is looking attractive if yesterday's high of 1.2960 gives way.
USD/CAD after the BOC cut
