Canadian Dollar Forecast to Rally Further
The ratio of long to short positions in the USDCAD stands at 2.50 as nearly 71% of traders are long. Yesterday, the ratio was at 2.70 as 73% of open positions were long. In detail, long positions are 7.1% lower than yesterday and 32.8% stronger since last week. Short positions are 0.3% higher than yesterday and 5.5% weaker since last week.
A bearish USDCAD bias lines up with FX options analysis, while CFTC Commitment of Traders data shows Non Commercial traders are aggressively net-long. There is considerable risk that an end-of-year deleveraging could push the USDCAD lower.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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