Canadian dollar seems to be stuck at the crossroad. It neither rises, nor falls. Most traders know that it is highly correlated to oil as Canada is rich with this commodity. However, we do expect to see significant advances in most Canadian dollar pairs in the nearest future. Anyone understands that technical analysis is not enough to push the ‘loonie’ out of its’ current ranges. It needs something fundamental (tangible) in order to rise or fall. One of the catalysts could be tomorrow’s data (Canada’s CPI – Consumer Price Index).
Although European currencies: eur/cad and gbp/cad have been rising against CAD, US dollar advance was pathetic. After FOMC decision yesterday and CPI coming tomorrow the picture might drastically change. I think Canadian dollar will fall. Let’s wait and see.