On the watch List
Canadian dollar: The net long position rose by 10k contracts, which
almost completely reflect new longs coming into the market (10.3k), while short
rose by almost 300 contracts. The new longs were likely disappointed. They may
have initially been encouraged by the upgraded economic assessment offered by
the central bank at the conclusion of its policy meeting that stood pat (April
17), but there was no follow through gains.
While technical and fundamental factors seem to favor the Canadian dollar,
the risk is that more signs that the US economy, especially the manufacturing
sector, is slowing (after running ahead of demand) will lead the
under-performance compared with most of the other major currencies.
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