- The loonie continues to be among the worst performing coins on the market.
- USD / CAD accelerates and advances for the fifth day in a row.
The USD / CAD continued to rise and reached 1.2948, the highest level since December 2020. It then finally undertook a correction and is trading near 1.2900, almost 100 pips above Thursday’s close.
The advance of the USD / CAD is mainly due to a collapse of the loonie and while the dollar remains strong. The weakness of the Canadian currency has been key. The USD / CAD accumulates a weekly gain of more than 400 pips, the largest since the first quarter of 2020.
The fall in the price of crude oil together with risk aversion continue to be supportive factors for the USD / CAD. The sharp decline in the CAD these days does not have a specific factor behind it. The news of Canada’s economic performance was not surprising and the central bank continues its gradual reduction of the purchase program.
With regard to data, on Friday there will be no US, while in Canada the evolution of retail sales during June will be known, which are expected to show an advance of 4.5%. The data may add some noise to the current volatility of the loonie crosses.
Technical levels
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