Thursday, November 29, 2012

Comments on Canadian Dollar




Attached is a 30 day chart of December Canadian Dollar.

The risk on mindset in US equities should provide a continued tailwind in CDZ2.  We remain with a positive bias. Our stop level is a settle below 100.34 which is the trendline for support and several old lows. Our short term objective remains at 101.20. 

For the next 32 days it seems that the risk is for the "risk on" trade to gain momentum.  Markets seem to feel that budget negotiations will drag out till end of December so an early announcement may cause an exaggerated move higher in stocks and risk currencies.