Schedule Canadian dollar to US dollar at intervals of 1 day
The Canadian dollar is becoming more “vulnerable to a global environment that it cannot control” given that it has more than reflected the rise in oil prices and the number of speculative (margin) buy positions is off the charts, according to TD Securities.
There is also too much local optimism in the price as the dollar / Canadian dollar is trading at a discount to growth expectations for Canada, Mark McCormick, head of global monetary strategy, wrote in a note to clients. While USD / CAD is likely will reach 1.20 by next year, “The reward / risk ratio in the very short term will be very unfavorable.”
The Expert Advisor prefers to wait for the USD / CAD rebound to 1.26 before selling the pair.
While the Canadian dollar should continue to outperform some of the major European currencies in the short term, such as the pound and the euro, “it is unlikely that it will hit new levels against the dollar from current levels, so rallies should be preferred over the pair during its decline. ”
While the Bank of Canada has become tougher in its stance by helping the Canadian dollar, traders will look forward to seeing if the monetary authority delivers on its promises in the coming months.