The Canadian Dollar keeps showing weakness against its southern neighbor, which means the US Dollar is gaining value. This has been happening since early January 2014. The positive economic reports for the USA that came out on Wednesday and Thursday reassured traders and investors and helped the US Dollar to gain some value against other major currencies worldwide. The only major release that can improve the state of affairs for the Canadian Dollar is the Canadian GDP report scheduled for today, January 31st.
It is necessary to say that the Canadian GDP figures have been fairly stable so far. Over the last 3 months the GDP gained 0,3%, thereby exceeding analytic expectations. At this point, the GDP is expected to gain 0,2% during the reporting period. If the actual figures fail to come up to expectations, the Canadian Dollar will definitely keep losing ground against the US Dollar.
It is necessary to underline the fact that the US Dollar strengthened against some other currencies, the Canadian Dollar wasn’t the only loser. The major reason for such a decision is the Fed’s statement, which revealed its decision to continue tapering QE3 by $10bn more. Another reason is better economic figures coming from the USA.
Masterforex-V Academy on USDCAD Prospects
According to the trading experts, the currency pair has been developing a long-term bullish trend since September 2012. Since then USDCAD has already made another major high (1.1197 - the highest level since 2011. The bullish bias is seen on all the time-frames. It should be noted that the upward potential is still pretty decent while the rally is still underway.
At the same time, the current levels of support are located at - 1.1105 and 1.1030. The price reaction to the following levels will clarify the near-term prospects
