The pair has seen its upside accelerated after Canadian GDP figures have come in short of expectations during the third quarter, showing the domestic economy has expanded at an annual pace of 2.3% vs. 2.4% expected. On a monthly basis, the Canadian economic has contracted 0.5% vs. a flat reading initially forecasted. Poor data have increased the selling pressure around CAD and pushed spot to fresh highs near the 1.3400 handle ahead of US data.
This is a very important week for the Canadian dollar: we also have the Bank of Canada’s rate decision tomorrow, jobs data on Friday as well as the OPEC meeting. It is a busy week for global currencies as central banks take centre stage while a potentially explosive OPEC meeting on Friday makes the CAD a volatile prospect.
I am also shorting EURCAD from 14250 (SL 14360)