canadian dollar comment jan 12 2011
Trend. CAD outperformed against its major peers in 2011 so far, and appreciated about 1% against USD. Oil price in New York resumed the momentum and closed above $91/barrel, the medium term uptrend of oil price should be supportive for CAD movement. Also, given that the close trading relation between U.S. and Canada, Canadian economy is one of the beneficiaries of U.S. recovery. Technical. USD/CAD is testing the lower bound of trading range 0.99, breaking this level may expose to its 3-year low 0.9712 (low price since Feb 2008).
Trend. CAD outperformed against its major peers in 2011 so far, and appreciated about 1% against USD. Oil price in New York resumed the momentum and closed above $91/barrel, the medium term uptrend of oil price should be supportive for CAD movement. Also, given that the close trading relation between U.S. and Canada, Canadian economy is one of the beneficiaries of U.S. recovery. Technical. USD/CAD is testing the lower bound of trading range 0.99, breaking this level may expose to its 3-year low 0.9712 (low price since Feb 2008).