CAD: Strong GDP figures infused new life - BBH

Just when it looked that the Canadian dollar, the best performing major currency since the beginning of May (10%) was going to fall victim to profit-taking, the stronger than expected May GDP (0.6% on the month and 4.6% year-over-year) gave it new life, according to analysts at BBH.  

Key Quotes

“The US dollar is found bids ahead of CAD1.2400.  With the market more confident of a Q4 hike by the Bank of Canada than the Federal Reserve, the Canadian dollar can move higher.  The technical readings are stretched.    The Slow Stochastics have been moving sideways in the trough since the start of the month, and the weekly RSI is at its lowest level since 2007.  However, the Canadian dollar enjoyed strong momentum ahead of the weekend and closed at its best level since the middle of 2015.   The CAD1.2130-CAD1.2160 is the next important technical target.”