Renewed signs of USD/CAD demand on increased volume warn of further gains in the short term. What is more striking is the broader consistency of CAD underperformance against other commodity currencies. NZD/CAD has resumed an uptrend in place for four years. AUD/CAD has yet to break range though even in this cross, the risks are for a test of the range highs since Q4-2012. Although the CAD is far from becoming a bearish market favorite such as the GBP or JPY, these signals suggest an increase in downside risks.
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Barclays