The FX space restrained- BMO Capital Markets

By FXstreet.com | July 02, 2014 AAA

FXStreet (Guatemala) - Greg Anderson, Global Head of Currency Strategy at BMO Capital explained Price action in FX has been quite restrained this week and the overnight was no exception.

Key Quotes:

"The only substantial move was in AUD. AUD was taken lower by the trade data referenced above, while GBP is the biggest gainer (although only barely higher) on the back of the home price data. The move in GBP/USD represents a new cycle high but the fact that shockingly good data can’t take GBP higher may be a sign that the market can’t get much longer."

"USD/CAD traded down to 1.0630 in yesterday’s holiday-thinned market and then broke through that level in the early London session this morning before encountering buyers. The pair still trades heavy going in to the American session, although it may find more bargain seekers as liquidity builds somewhat with Canada back online."

"I view any level below 1.0700 as an extreme bargain, but for the moment USD/CAD is a falling knife and it is too early to try and grab it. It needs to bounce first."

"Last month’s strong US employment report did little to help the USD, but that was when the market had substantial USD longs in play. The market feels much more neutral now."

comments powered by Disqus
Related Forex Analysis
  1. SEB: EUR/USD sellers just above resistance - eFXnews
    Forex News

    SEB: EUR/USD sellers just above resistance - eFXnews

  2. USD/JPY shows another attempt to reach recent highs
    Forex News

    USD/JPY shows another attempt to reach recent highs

  3. EUR/GBP testing the range bottom before the UK data
    Forex News

    EUR/GBP testing the range bottom before the UK data

  4. EUR/USD Forex Signal - September 17
    Investing

    EUR/USD Forex Signal - September 17

  5. What’s the sentiment around the EUR/USD today? – OCBC Bank and Scotiabank
    Forex News

    What’s the sentiment around the EUR/USD today? – OCBC Bank and Scotiabank

Trading Center