Dukascopy - Analytics

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USD/CAD trades flat, awaits Manufacturing PMI

© Dukascopy Bank SA
"The taper tantrum was Fed-induced while the latest bout of risk aversion is fuelled by concerns about China. The USD-weakness thus seems to be more of a collateral damage." 
- Credit Agricole (based on CNBC) 


Pair's Outlook 
The US Dollar weakened against the Loonie yesterday, as hopes of the Fed raising interest rates as early as September were dampened. However, the immediate support cluster, namely the weekly PP, managed to stop the pair from falling deeper. This group of important levels is providing resistance today and keeping the USD/CAD at bay, although risks of it being breached persist if the Fundamental data supports the Buck. The base-case scenario is a slight shift to the downside, while any possible harsh volatility should be limited by the second cluster around 1.2990. 

Traders' Sentiment 
Bearish market sentiment remains unchanged at 73%, while the share of buy commands declined from 70 to 66%.
© Dukascopy Bank SA


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