USDCAD is leaning on the strong resistance around 1.2925/35
A big level up here in USDCAD and one that if broken, could see a quick move on 1.3000.
I might well be pissing into the wind here but I’ve sold very small at 1.2926 just to test the level. I’ve got a 15 pips stop.
What’s working in the USD’s favour is Trumps latest tweets which show a possible softening on tarrifs.
We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed. Also, Canada must..
— Donald J. Trump (@realDonaldTrump) March 5, 2018
We’ve also the BOC monetary policy meeting risk this week so I’m just looking to nick a few pips if the level holds, rather than a longer-term play.