USD/CAD Final tap into the retracement zone...

The DXY is looking precarious again on the 93.000 handle after recovering late yesterday, but fading at 93.347 and only fractionally eclipsing that high (at 93.351) before declining to 92.965. The aforementioned portfolio positioning for next Monday (or this Thursday in spot terms) could be keeping the Buck capped, but an unexpected deterioration in US consumer confidence to multi-year lows may also be weighing alongside firmer oil prices due to hurricane forced production shutdowns and pre-weekly inventory updates. Conversely, the Franc has rebounded through 0.9100, the Euro from sub-1.1800, albeit not quite far enough to match Monday’s high or trigger a decent option expiry at 1.1850 (1 bn) despite a relatively upbeat German Ifo survey, and the Aussie from circa 0.7152 towards 0.7200. The greenback should now extend USD/CAD into a new low over the next 48 hours.