Concerns about trade, weaker manufacturing sales weighs on the pair
The USD is not falling vs. the CAD.
- There is a flight out of risk as stocks and yields fall,
- the manufacturing sales in Canada were much weaker than expectation, and
- The CAD is also trading lower on trade concerns.
The pair has moved to the highest level since June 28, 2017 and moved above the 61.8% of the move down from the May 2017 high at 1.3131. Back in March the price of the pair moved to test that level and stalled (high reached 1.31243). We currently trade at 1.3164.
Looking at the 4-hour chart below, the price moved above a topside trend line at the end of yesterday (at 1.3091 currently). That increased the bullish bias. That momentum has continued today.
