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London, September 29: The slightly softer dollar tone in the European AM has put pressure back on the downside, with USD/CAD held near the lows of the session at 1.2710. Fundamentals remain supportive for the CAD and the bounce up to 1.2770 from momentum fund buying was used as a reason to place more USD/CAD shorts by specs.Firm commodity prices and interest rates differentials remain the main driver for CAD longs but the market may lack the stomach for another decent push lower given the magnitude of speculative long CAD positions at these levels. Barriersare noted at 1.2675 and every 25 pips down to 1.2600 and another downside push looks inevitable. --Russell.Bloom@Thomson.com
London, September 29: The slightly softer dollar tone in the European AM has put pressure back on the downside, with USD/CAD held near the lows of the session at 1.2710. Fundamentals remain supportive for the CAD and the bounce up to 1.2770 from momentum fund buying was used as a reason to place more USD/CAD shorts by specs.Firm commodity prices and interest rates differentials remain the main driver for CAD longs but the market may lack the stomach for another decent push lower given the magnitude of speculative long CAD positions at these levels. Barriersare noted at 1.2675 and every 25 pips down to 1.2600 and another downside push looks inevitable. --Russell.Bloom@Thomson.com
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