- The US dollar continues to rise against the sad and lonely Canadian dollar.
- The US dollar was slightly stronger during trading on Thursday against the Canadian dollar despite the fact that it was a national day of mourning in the United States for former President Jimmy Carter.
- This means that Wall Street traders were largely off the job and therefore liquidity could have been a problem.
But at the end of the day this is just a continuation of what we saw despite the fact that it wasn’t over. But what I pay most attention to on Friday is the fact that this could be the epicenter of forex trading. After all, we do get a non-farm payrolls release coming out of the United States as well as employment numbers coming out of Canada, so a lot of volatility is just waiting to happen.
Friday’s closing could be important
In this environment, I suspect the daily close will tell us most of what we need to know. For example, if we close above the 1.45 level at the end of the session on Friday, that is an extremely bullish sign. If we close below the 1.4350 level, then we may have to go back to the 1.42 level where I would also expect to see buyers.
I don’t want to buy Canadian dollars. We’re not at a place where I think things are changing. Yes, we are at an extremely high level right now, but the reality is that the situation in the Canadian Parliament is too messy to bother with. Moreover, the Canadian economy is not exactly humming. At the same time, the US economy is probably running too hot. So, unless we get some kind of massive reversal during the Friday session, in terms of the economic outlook, I predict that any pullback at this point will be considered a buying opportunity, just as a daily close above the 1.45 level would be an extremely bullish sign.
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