US dollar choppy against the Canadian dollar on Good Friday

The US dollar went back and forth against the Canadian dollar on Friday, as we continue to see a lot of noise in this market. I believe that the 1.29 level offers enough interest in traders to push back and forth. I believe that eventually we may go looking towards the 1.30 level, but we need to break above the 1.2925 handle. The 1.30 level will be psychologically important, but I think we need to have oil markets roll over to have that happen as well.

If the markets continue to fall from here, I suspect that it’s not until we break down below the 1.28 level that we will continue to see more selling pressure. That would probably send this market down to the 1.26 handle at that point. Either way, I would anticipate that we will see a lot of noise in this market, and ultimately this is a marketplace that I think will find plenty of reason to go back and forth. The US dollar of course has a significant amount of noise attached to it not only due to the global risk profile, but of course the interest rate hikes coming out of the Federal Reserve.

I don’t think that the markets will be very willing to put a lot of money in one direction or the other, least not until we get some type of clarity in the oil markets, and of course the idea of where we are going to go as far as trade talks are concerned.

USD/CAD Video 02.04.18