I would not jump out on a limb here and make any grand prognostication or hard call here, as everything may change come this afternoon. That said, we are seeing some interesting trading dynamics in the Canadian Dollar, represented here by the Currency Shares Trust- FXC. Lets look at the chart-
What is interesting here is that despite the Euro, the yen, and the pound all breaking down below recent or long-term support levels, the Canadian Dollar has held the line. Of course the trend may be more of a story concerning interest rates in Canada, but it may also indicate a lack of conviction by Canadian Dollar traders as it pertains to the possibility of an interest rate increase by the Fed. More so, significant upside volume has come in at the support levels, which may also be another indicator that traders in the Canadian/US cross rate see little to muted changes in the interest rate differentials between the two nations. The Canadian Dollar trade should probably be on your screen of indicators to watch.
What is interesting here is that despite the Euro, the yen, and the pound all breaking down below recent or long-term support levels, the Canadian Dollar has held the line. Of course the trend may be more of a story concerning interest rates in Canada, but it may also indicate a lack of conviction by Canadian Dollar traders as it pertains to the possibility of an interest rate increase by the Fed. More so, significant upside volume has come in at the support levels, which may also be another indicator that traders in the Canadian/US cross rate see little to muted changes in the interest rate differentials between the two nations. The Canadian Dollar trade should probably be on your screen of indicators to watch.
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