Taking advantage of Fed Powell’s remarks, coupled with a tight stop loss, a long was taken in the USDCAD risking 8 pips for a potential 38 pips to our daily target at 1.2390.
Although the market has been anticipating the stimulus taper to begin this year and end mid 2022, any specific timeline for a rate hike next year is still an unknown despite inflation appearing to be more than “transitory”.
The immediate reaction to Chair Powell was a move higher in the USDCAD and the trade was closed at the U.K. close for a quick profit..
Enjoy your weekend and good luck with your trading!