USD/CAD (current price: 1.3576)
The Canadian Dollar was among the most active majors again, as it continued to drift lower against most of its important peers on Tuesday. The better than expected U.S. economic numbers propelled the pair even higher, and the rally in the major commodities wasn’t enough to change the underlying trend. The Loonie is still hurt by the weakness in base metals and the economic slowdown in China. Last week’s huge negative surprise in the Canadian GDP is also weighing heavily on the currency.
Our assessment: The pair is still trading in a short-term uptrend, and it hit the crucial 1.3550 level yesterday. Traders might still focus on the upper boundary of the long-standing trading range this week.
