Buy the rumor, sell the news. That’s the old market axiom and it is working pretty well in the case of the CAD this morning. The Loonie has been well-supported in recent sessions in anticipation of the first of what is expected to be a series of rate hikes.
The CAD has sold off modestly in the wake of the news of the 25 bp hike in the overnight lending rate. It trades now at 1.0530. Small stop-loss buy orders are spotted just above recent 1.0560 highs, traders report.