Flash: Less liquidity and a choppy USD/CAD – BMO

FXstreet.com (London) - Stephen Gallo at BMO said some calm has returned to the markets after yesterday, but until things really change elsewhere it is hard to see USD/CAD coming off too hard.

He feels liquidity is still very much an issue across all markets and with month end approaching, it looks like we are going to be in for more choppy trading in to the end of this week. He see’s initial support comes in today at 1.0475, and a break back below 1.0450 may flush out some of the weaker USD longs. 1.0600 the next key pivot point to the topside. “…With EM much calmer too, AUD, CAD and some of the other currencies that have suffered post FOMC have retraced a little”.