Some thought on $C. Who need to buy $C. Well with Canada running a dual surplus alot of Canadians need to buy $C. As I have said before my grain hedging buddies do not have enough $C. This is because they remember a $0.63 Canadian dollar and are looking for a pull back. I would imagine that a similar situation exists in the oil industry. All the Canadian incomes trust have to buy $C to make their distribution payments to unit holders monthly. If this was the whole story the pair would be at 1.1500. So who is buying $US? I could use some help here but I'll give it a go. When the the pound,euro and yen sell off the $US index sells of and this will for the index makers to sell $C. Hedge funds right now are having huge signals flash before their eyes telling them to buy $US. I can just see the greed in their eyes. I'll make a big bet and make my whole years profit in two weeks then I'll take my big bonus and go south for Christmas. One should also consider the carry traders who are motivated to buy $US. Well I gave it a go. Does anyone think they can do better?
Yeah! Keep pushing the pair lower so I can add to my long positions! (previous comment meant to the market in general, not to Kastro)
I am going to wait for some days for a good intraday short signal I will post my position here soon. Gl!