CAD: Strength to continue? - BBH

The Canadian dollar surged before the weekend in response to another stellar jobs report as the strength of the jobs report increased speculation that the Bank of Canada will hike rates when it meets on January 17, according to Marc Chandler, Global Head of Currency Strategy at BBH.  

Key Quotes

“The US dollar was sold through CAD1.26 at the end of last year and CAD1.24 after the employment data.  The CAD1.2390 area corresponds to the 6.18% retracement of the US dollar rally from last September's low near CAD1.2060, and the lower Bollinger Band.   Substantive chart support is not seen until closer to CAD1.22.   The RSI is stretched and the MACDs are getting there, but the Slow Stochastic is bottoming and likely to turn higher next week.”