Expected USD/CAD Range: 1.028 – 1.035
Recent Developments: Strong retail sales figures in Canada and weaker than expected manufacturing figures in the US (all released this morning) have propelled the loonie to its strongest level in about a month. Other factors causing the short term strength are the recent strength in the price of gold as well as the market’s evolving view as to the expected timing of Fed tapering. The market is now focused on US jobs numbers out later this week.
The Big Picture: The commodity boom has seemingly ended (or is at least sputtering). Relatedly, Chinese and other emerging market economies have …