CAD

Is all hell about to breaks loose for Loonie longs?

Yesterday, Bank of America released a note titled simply enough "CAD longs at risk", in which it said that "according to our liquid cross border flow (LCBF) data, hedge funds and real money now appear to be in the process of selling out of extended CAD longs after having been consistent buyers since the summer." The Bank said that this represents an important directional shift and explained as follows: 

Submitted by Shant Movsesian and Rajan Dhall MSTA fxdailyterminal.com

In recent weeks, we have continued to look to further gains in the USD, initially led by a belief that the bearish scenario had been exhausted, but later on improving data.  Time frame is a key factor in our metrics for where we see currencies finding value, and given that we have seen some strong gains against the CAD and JPY in recent weeks, we may be close to congestion levels, which these days tend to develop into significant tops.  

Submitted by Rajan Dhall FXDaily.co.uk and Shant Movsesian of RANSquawk

FX Week Ahead: Focus returns to the US economy as politics have run riot once again. Theresa May clearly made a big mistake in calling the snap election, and the Pound has suffered accordingly, though gains had perhaps run their course. NZD still looks good, while CAD weathers Oil price drop as domestic data supports.

Submitted by Shant Movsesian (RANSquawk) and Rajan Dhall MSTA

All eyes on Sunday’s French election result, but little evidence of defensive positioning in the EUR. GBP continues to fly the flag, batting off the negative mood over the latest Brexit exchanges. Commodities in focus, but tentative signs of some near term relief. CAD overstretched. US jobs report mixed at best.