CAD is correcting nicely

With bullishness extreme about Canada and the CAD, it was only a matter of time until some form of correction took place. It had to happen the day Canada announces the recession is over. Quite an upside down world we live in :-)
Let's see if this is the beginner of the real correction, or if it's just a blip to suck in more "buy the dip" speculators. Given that the stock markets are rallying and are quite off the lows, I think this correction might not be the real one we are expecting.


Central Bunk said...

Do you still stand by your original trading idea of shorting the loonie vs the euro?
Let's keep things consistent...Your last FX post discussed going short the loonie vs USD.
What is the Reality Lenses fantasy position? Short CAD vs USD or short CAD vs EUR??

pej said...

Currently, my only FX position is short EUR long USD (opened at EUR/USD = 1.49xx). I actually reversed a long EUR short USD position that day (opened at EUR/USD = 1.28xx AFAIR).

The CAD is likely to fall against both the EUR and the USD but I haven't made my mind about which position to open yet (call it luck or 6th sense). The timing should be simple: the same moment than the commodities and equities start falling.

When I open the position, I'll write a post about it.