There is still room to grow for the Canadian dollar, says Audrey Childe-Freeman, chief strategist at FX Knowledge. "Once the NAFTA [negotiations] element is removed, it should catch up with the interest rates market," she says, which are pricing in three rate increases by the Bank of Canada this year. CAD has held its ground during the recent sixth phase of NAFTA talks. "I was holding on to the trade [during the talks] and it has paid off," says Ms. Childe-Freeman. CAD rises versus USD, with USD/CAD down by 0.5% at 1.2270 after Canadian November GDP showed a rise of 0.4% month-on-month on Wednesday.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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