The Canadian dollar continues advancing. In a day light with economic indicators (and this will change quite soon), the loonie still finds reasons to rise. Dollar/CAD is trading at 1.2089, falling below 1.21 and hitting a low of 1.2080.
Oil prices were on the move on Friday and continue ticking higher. This isn’t a spike but rather a gradual grind higher. And also the USD has reasons to slide on the other side of the equation.
The only noteworthy US indicator is the Flash Services PMI from Markit. It fell short of expectations by sliding. In general, it joins a losing streak of US figures, that was most pronounced with the plunge in new home sales as well as the underwhelming core durable goods orders.
On the Canadian side, bigger driver is the optimism from the central bank which continues echoing and pushes the C$ forward. We will get Canadian GDP later on this week.
More: Is CAD Oversold; How To Play It Now? – Credit Agricole
The next obvious level is 1.20, which is a very round number. Resistance awaits at 1.2150 followed by 1.2190.
