USD/CAD: Shorts in play again
I’ve felt for some time that the market has been getting way ahead of itself on the bullish USD front, especially with expectations that we would see a significant rise in interest rates over a short period of time. The Fed seems to be of the same view, namely that the US economy still needs stimulus.
There is little point in fighting a strong trend but once you think it’s starting to turn, then you must jump on with conviction.
I’ve gone short USD/CAD at 1.1105 and will look to increase the position as the important short-term levels become more apparent. I have a stop on the strategy above 1.1270.