Traders report decent selling from US real money accounts in USD/CD this afternoon as well as selling from local banks in Toronto. That said, the pair does not seem to want to budge, consolidating this morning’s rally around the 1.3000/10 area.
Turning to the medium-term outlook, hanging overhead we have the 20o-moving average which is trading virtually horizontal. For the last few months we done nothing but jog along 2-3 cents either side of that average. With the market loaded to the gills with commodity currencies, a reversion to the mean looks like it is underway.
