2 May 2016
CAD: Canadian dollar flying high – BBH
Research Team at BBH, suggests that the rising oil prices, a stand pat Fed with diminished chances of a Canadian rate cut, and a Bank of Canada that has not objected to the strength of the Canadian dollar has seen the Loonie's gains extended.
Key Quotes
“The convincing break of CAD1.2650 warns of the potential for the US dollar to fall toward CAD1.2050. Since late-January, the US dollar has closed above its 20-day moving average against the Canadian dollar twice. That moving average is at a distant CAD1.28 now. The RSI and MACDs are not making new lows as the greenback is, but the divergence does not appear to be deterring new US dollar sellers.”
Key Quotes
“The convincing break of CAD1.2650 warns of the potential for the US dollar to fall toward CAD1.2050. Since late-January, the US dollar has closed above its 20-day moving average against the Canadian dollar twice. That moving average is at a distant CAD1.28 now. The RSI and MACDs are not making new lows as the greenback is, but the divergence does not appear to be deterring new US dollar sellers.”