USD/CAD (current price: 1.2936)
The Canadian Dollar also had a wide trading range yesterday as commodities and central banks provided a lot of impulses for the currencies. Foreign Securities Purchases in Canada surprised on the upside, which helped the late day decline in the pair that was also fueled by the relief rally in stocks. The cross still finished the session with a gain, as the Loonie was hit hard by the sharp decline in the price of oil. The bearish late-day move in precious metals also weighed on the commodity currency towards the end of the day.
Our assessment: The negative trend on oil is likely to keep the Canadian Dollar under pressure, despite the dovish FED policies. This might mean that the recent advance in the pair is not over yet, with resistance looming at 1.32.
