Canada Continues To Pull Ahead – Short USD/CAD

More good numbers out of Canada today as the economy appears to be firing on all cylinders.

Firms in Canada may look to raise consumer prices amid the underlying strength in job growth along with the expansion in private sector credit, and a positive development may heighten the appeal of the Canadian dollar should the data spark bets for a rate hike.

Meanwhile south of the border:

The city of Detroit filed for Chapter 9 bankruptcy protection in federal court Thursday, laying the groundwork for a historic effort to bail out a city that is sinking under billions of dollars in debt and decades of mismanagement, population flight and loss of tax revenue.

The bankruptcy filing makes Detroit the largest city “so far” in U.S. history to do so.

Obviously I’m suggesting short USD/CAD sets up quite well at these levels. I’ve booked 2% on the trade and will look to reload on any further “pop” in USD which gets less and less likely by the day.

2 Responses

  1. Earlly July 19, 2013 / 8:54 am

    I also Believe that the CDN is undervalued, What I think is worse is the aussie Dollar, just got informed on how much products, name brand ect. cost down to purchase down there. jeans etc. that takes some cake to buy. true r jeans 400 is that for real.

    • Forex Kong July 19, 2013 / 8:59 am

      Loonie whould have some room to move you bet. As far as the price of jeans in Australia -he he he….lets wait an hour and see if a couple of our “people on the street” can shed some light.

      I’m equally curious.

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