USD/CAD dips to the downside as it backs away from 1.30. What’s next

USD/CAD consolidates ahead of the big figure

To my way of thinking, if a market is going to reject a big level, it should do it quickly. USD/CAD rose back to 1.30 yesterday on the dovish comments from Poloz.

The pair has slipped 25 pips lower today but it’s not exactly retracing. It spent much of Asian and early European trading around 1.2950 before a small push lower in the past hour.

The market is hyper-focused on trade so if there was something concrete on NAFTA or tariffs then we might get a definitive move. However, there is nothing on the calendar on that front for the remainder of the week so it’s likely to be US data that moves the market.

My inclination is to lean towards a break higher but it’s not a sure thing. A better trade may just be to wait for it and go-with a break.

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