- USD / CAD fell below 1.2650 to hit new monthly lows on Monday.
- The loonie is being driven by risk, strong oil prices and strong Canadian data.
The Canadian dollar is performing well on the first trading day of the week, driven by strong crude oil prices, widespread risk in market tone, and following strong Canadian data, despite the fact that Canadian markets are closed by the day due to Family Day Vacation. USD / CAD has fallen below 1.2650 in recent trading, new lows for the month, and bears are now pointing to a move towards last month’s lows just below 1.2600. As of this moment, the pair is trading with losses of around 0.3% or around 40 pips on the day.
Canadian data was also stronger than expected on Monday; Annualized home starts increased to 282.4 thousand in January from 228.3 thousand in December 2020. Meanwhile, manufacturing sales experienced a 0.9% month-on-month growth in December 2020, above expectations for a growth rate of 0.6 % and more than offsetting the 0.6% drop in sales seen in November 2020.
Technical Levels
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