USD/CAD: The bias is higher
|The US dollar still possesses all the cards in the pair comparison as the Canadian dollar remains vulnerable to a triple threat, Joseph Trevisani, an analyst at FXStreet’s reports.
Key quotes
“Crude oil prices will remain low as long as demand is weak, Canada’s statistics reflect an economy and employment as damaged as the US but with a much smaller internal market for its manufactured products and much lower global demand for its exports and finally in the still expanding economic crisis there is no alternative to the US currency for safety.”
“As the full extent of the labor market inferno becomes apparent on Friday the benefit, if one can use the term, will accrue to the US dollar. If the Canadian employment numbers are notably better than those of the US, it could aid the loonie. No one, however, expects that.”
“The 21-day average was crossed in Friday's move higher and, thus, loses its negative connotation.”
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