Signal: USDCAD bullish but nearing a top
CAD: The short-term CAD COT index has turned down from extremes and trended lower, which suggests that we may see further USDCAD strength through the coming weeks of trade. Yet the longer-term view shows that fewer and fewer traders hold USDCAD-short positions on an indexed basis, which tells us that we are nearing a potential short-to-medium term top in the USDCAD. Our reading remains CAD-bearish (USDCAD bullish), but we will wait for a significant turn in positioning to establish a firmer bias.