Loonie Profits

Hope some of you managed to trade USDCAD yesterday and taken profits. If you are still in that trade then ensure you manage the position.

The Euro Dollar is looking a little bullish so we are looking for an opportunity for a long position. We have some US news out which could be Dollar negative so will watch out for this.

On January 30th the Fed come out of a two day meeting with an expected 25bp or 50bp cut. Some analysts are calling for a higher rate cut but that looks unlikely at this stage. We did say another 1% cut could happen between now and the end of 2008 but this could happen before the end of this year. This cut would ease concerns of recession but probably not for long.

We have a heavy fundamental week ahead so be warned.

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Forex Analysts

Javid Shaik & Anne Chapman