The Canadian dollar continues taking advantage of the US dollar’s weakness.Without any news related to Canada, the C$ advances to the highest level since mid January.
USD/CAD dipped below 1.09 and reached a low of 1.0892 before rising back above the round number. This comes ahead of the FOMC meeting minutes, which could be decisive for the next move.
Update:Â FOMC Meeting Minutes give USD another blow on calm message
Here is the daily chart, showing the recent levels of USD/CAD:
Yesterday, the loonie ignored weak Canadian housing figures and focused on the sell off of the greenback. In addition, the Canadian dollar still enjoys the excellent jobs report in Canada. Canada’s job growth in March was more convincing than the US job growth, which was only OK.
One of the factors strengthening the dollar during March was the hawkish comment by Fed Chair Janet Yellen regarding a potential rate hike. We will now see if the Fed is truly hawkish or if it is cautious as it usually is.
A cautious Fed could extend the fall of USD/CAD towards 1.0850 and 1.0780. A hawkish Fed could reverse the move and send the pair towards 1.10, which is a clear separator of ranges.
For more levels, analysis and events, see the Canadian loonie forecast.
