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USDCAD: Retail trader data shows 61.3% of traders are net-long with the ratio of traders long to short at 1.58 to 1. In fact, traders have remained net-long since Jun 07 when USDCAD traded near 1.35095; price has moved 7.7% lower since then. The number of traders net-long is 0.8% higher than yesterday and 7.8% lower from last week, while the number of traders net-short is 1.8% lower than yesterday and 44.4% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDCAD prices may continue to fall. Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed USDCAD trading bias.
— Written by Christopher Vecchio, CFA, Senior Currency Strategist
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