Upwards of 5 yards of M&A-related flows are hitting the market today after similar reports yesterday. The deal in question is domestic Canadian deal but is being financed largely by US banks, dealers say. USD/CAD has been in near-freefall in recent days as panic recedes from the global financial markets.
Canada continues to face headwinds, however. The manufacturing sector in Ontario is heavily exposed to the struggling auto sector while the commodities markets remain depressed owing to a global demand slowdown.
Prices have retraced just over 50% of the explosive upside move through 1.3000 and trade now at 1.4650. The 61.8% retracement of the rally from 1.0290 comes in at 1.1330.
