10 Jun 2013
Flash: CAD strongest currency before the weekend - BBH
FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that the CAD was the strongest of the major currencies before the weekend, bolstered by the strongest jobs growth in a decade (95k).
He feels that with subsequent loss in the US dollar, it has retraced 38.2% of the May rally (~CAD1.0014 to ~CAD1.0420). However, he adds that it finished back above CAD1.02 suggesting the risk of some near term consolidation. He writes, “Provided the greenback is capped near CAD1.03, it appears technically vulnerable to slippage back toward CAD1.01. The Canadian dollar looks set to continue to outperform the other dollar-bloc currencies.”
He feels that with subsequent loss in the US dollar, it has retraced 38.2% of the May rally (~CAD1.0014 to ~CAD1.0420). However, he adds that it finished back above CAD1.02 suggesting the risk of some near term consolidation. He writes, “Provided the greenback is capped near CAD1.03, it appears technically vulnerable to slippage back toward CAD1.01. The Canadian dollar looks set to continue to outperform the other dollar-bloc currencies.”