With US Dollar taking a beating again, USD-CAD exchange rate is becoming interesting. As of this writing, it is 1.0140, not far from parity. Question is, will it happen? For the better part of last year, as Canadian Dollar was getting stronger, BoC became very vocal on the subject. They mainly voiced their displeasure, with vague threats of intervention, disguised as “all necessary steps”, or something to that effect. All in the name of remaining competitive. Nothing came of it, and the Loonie has just been appreciating more and more.
Canadian officials have been quiet on the subject recently, until today, that is. And it wasn’t what most would expect. Finance Minister, Jim Flaherty, claims at current level CAD keeps Canadian economy competitive internationally. In a typical fashion for officials speaking about FX rates, he didn’t indicate at what level he would consider exchange rate too high, but didn’t seem concerned about the proximity to parity. It is quite a change of heart. At 1.1000 CAD is too strong, but at 1.0140 is not? Strange. Seems Loonie has a green light to reach parity with USD, now it is up to the markets to make it happen.
I have been trying to sell CAD last week, with CAD-CHF trade, which is currently going nowhere. For now, I’m staying with it. Another possible trade, in EUR-CAD hasn’t happened yet and probably will have to be redesigned, but not just yet. However, Canadian Dollar was of the counterparts in my targeted long Pound trades. I’ve been trailing recent highs with buy orders, and GBP finally rebounded today. Hourly charts were used for both entries and setting objectives.
GBP-CAD moved nicely above 1.5390, with buy order triggered at 1.5393. My objective was 90 pips, and price just missed it by few pips. Trade was closed for 69 pips gain. Nothing to complain about, especially since other trades did reach targets.
For both these trades objectives were short of previous resistance levels and it worked. Even though I have been waiting for these moves and thought of myself as “ready”, somehow I managed o overlook GBP-JPY and didn’t place an order there. Hmm, getting forgetful in my advanced age. Pound- Swissy order from “Watching GBP” post is still valid, as is AUD-JPY from last update. I’ll go over them tomorrow.
Mike K.
That’s pretty funny about you missing on gbg/jpy move. But it also shows that I’m not the only one making mistakes. In your case it is not a mistake, more like an oversight. Keep up the good work!
Thanks! No, you are not the only one making mistakes. I’m sure that everybody who trades with any frequency makes them.
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