Forex: USD/CAD extends Monday’s decline (Barcelona) - Yesterday’s New York session retraced most of the USD/CAD decline from 0.9890 low and extended the upside in early Tuesday until 0.9915 high. Selling pressure soon returned as the demand for the Loonie outgrows the greenback.

The improving sentiment that is taking down the USD/CAD has pushed the WTI crude oil above $96.00, up by +0.67%. Against the US Dollar is Fitch’s Riley warning that the AAA rating is at risk of downgrade in H1 2012 due to the “fiscal cliff”.

The USD/CAD is now back below 0.9900 and even below Monday’s low, of 0.9890, as the cross trades at 0.9887. UBS analysts are bearish on the exchange rate: “A move below 0.9886 would resume weakness to 0.9843”, wrote analyst Chris Walker, pointing to resistance at 0.9964.