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.
"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."