Intraday Market Thoughts

Archived IMT (2009.03.03)

by Ashraf Laidi
Mar 3, 2009 15:01

CAD resumes sell-off as BoC cuts by 50-bps and signals the path towards quantitative easing. Markets recall the hit on USD and GBP after the Fed and BoE announced their own QE. USDCAD has not made a clear break above 1.30 since 2004. Whether the USDCAD chart in yesterdays article appears as bearish or bullish pennant, the analysis suggests that if theres a time for the 1.30 break to materialize, then it would be on the heels of the 3-6 months lag between US and Canadian econ erosion, which is currently unravelling. The 1.30 breach may not materialize at the current upleg, but instead on events such as negative CAD payrolls (next week) and subsequent selling in equities. Today's AUDCHF Hot-Chart already +25 pips. Access to HotCharts oobtained by password (not via email)


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