- March 6, 2018
- Posted by: Joey Benedid
- Category: Market News
The dollar index has dropped since the NY close yesterday as players that have been long USD are ringing the till with the realization that Congressional approval is required for tariffs to be finalized and a growing number of GOP members voicing concern & outright disapproval of their Administration’s plans. Adding to this are reports emanating out of Seoul stating North Korea is willing to discuss giving up on nuclear weapons thereby easing tensions between the two nations.
USD/CAD topped out just below 1.3000 yesterday and has traded down to 1.2880 in early North American markets in this backdrop. With virtually 0% of a rate hike priced in for tomorrow’s BoC rate decision many were looking for this move and are now lightening up their positions. It remains to be seen if we convincingly break above 1.3000 and a pause for consolidation is well overdue.