USD Gains as Key Levels Hit – Is It Time to Sell?

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3890-1.4090

Euro                 1.4630-1.4830

Sterling            1.7600-1.7800

WTI Oil (opening level) $68.69

The CAD is opening at 1.4009 ( 0.7138)

Okay, the market broke 1.4000 (it touched 1.4019). Now what? Does it have momentum to go to 1.4085 = 0.7100. It could, but this is likely a very good selling opportunity at these levels. The big figure is often a barrier to movement if there is no significant event taking place. I should mention that the corridor and channel analysis charts both suggest that it is possible to get there. I guess you always have to remember that the 'trend is your friend'.

·    Equities: Can’t make further headway higher at the moment, perhaps on fresh bond yield surge

·    Volatility: Volatility edges up with hedging activity increasing ahead of CPI data.

·    Currencies: USD strength dominates again as US yields rise. Sterling suffers setback

·    Commodities: Gold stabilizes, crude oil hovers around key lows

·    Fixed Income: Treasury yields rise amid busy corporate bond issuance, US CPI in focus