From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
The US dollar can’t catch a bid.
Since briefly reclaiming its November highs last month, it’s been nothing but down and to the right for the US Dollar Index $DXY.
Many global currencies have reacted by catching higher – especially the euro. But commodity-centric currencies – like the Canadian and Australian dollars – have had a more muted reaction. We think that’s likely to change in the coming weeks and months.
With interest rates on the rise around the world and crude oil prices pushing above 90, we think it’s just a matter of time before we begin to see some real strength from these currencies – especially if we see a sustained downtrend in the USD.
Today we’re going to highlight one of these forex pairs, as we think it’s poised for a major move. Let’s talk about the USD/CAD.