With yet more optimism over NAFTA giving the CAD a lift, USDCAD could be another trade opportunity over the Fed
With USDCAD hitting a low of 1.2946 on better NAFTA sentiment and higher oil prices, this might present another trading opportunity alongside my GBPUSD idea in the FOMC preview.
Taking the view that the dollar hasn’t been able to maintain a bid after FOMC’s, and with the added CAD positive news, a jump un USDCAD over the FOMC could be a good fade. Given how volatile this pair can be, the 1.3100/30 area looks enticing once again, so that’s the level I’m going to focus on if we do get a pop tonight.
I like to look for trades that can kick a pair out of kilter with whatever the current trend is and so a jump in USDCAD would be just that. I know there’s a couple of folks in the live trading room who are also going to be watching the CAD tonight.