1 Jul 2013
Flash: Funds close to recent highs – BMO
FXstreet.com (London) - Stephen Gallo, strategist at BMO, explains that it is Canada Day today, and with the US also closed on Thursday, he says it feels like we are going to be in for a quiet start to the week.
The end of June flow was dominated by USD demand across most markets and this pushed USDCAD back up towards the recent highs near 1.0550 he said. “This area needs to crack if we are to have a run to new highs at 1.0600 and beyond.” On the down side, he sees good support that still lies in the 1.0425/1.0450 area, the lows seen last week. A break back below 1.0375, he feels, should trigger short term stops and would suggest this move higher may be over.
The end of June flow was dominated by USD demand across most markets and this pushed USDCAD back up towards the recent highs near 1.0550 he said. “This area needs to crack if we are to have a run to new highs at 1.0600 and beyond.” On the down side, he sees good support that still lies in the 1.0425/1.0450 area, the lows seen last week. A break back below 1.0375, he feels, should trigger short term stops and would suggest this move higher may be over.