Remember that gap opened up in USD/CAD after the employment report north of the border on Friday? It’s filled now! (see chart below)
USD/CAD has been a short-covering moonshot this morning as weak US data prompt traders to downgrade expectations for robust global growth outside the US…Really, it is little more than a loss of nerve, but who can blame traders for covering shorts after USD/CAD showed little appetite to hold the Loonie at levels below 1.03 versus the dollar.
As I like to say, again and again, what can’t go down must go up. And up we went.
1.0450/75 is solid resistance on rebounds near-term.
