USDCAD Open 1.0300-05 Overnight Range 1.0295-1.0328
Original Post on Saxo Bank’s Trading Floor http://www.tradingfloor.com/
USDCAD weighed down on China data again, during the overnight session with Chinese Industrial Production beating estimates. (It is interesting to observe that just after the Chinese vice chairman says that China won’t tolerate GDP growth less than 7.5%, the data turns positive..)The two day drop in USDCAD has triggered stops and gone a long way to trim the sizable “over-bought” USDCAD positions that have been reported.
Canadian Payroll Report Scenarios
If today’s Canadian employment report beats out consensus and prints something like +30K, the USDCAD will drop to test support at 1.0240.
If today’s employment report is flat to 10K, the current USDCAD grind lower will continue
If today’s report is negative 10K or worse, then a retest of 10350 will occur.
Personally, I am a buyer of USDCAD between 1.0260-80, with a stop below 1.0230