The Canadian dollar is limping toward the weekly finish line this week:
- Risk appetite is soft with stocks and yields lower
- Oil prices are down $1
- Yesterday’s IMF report highlighted the softness in emerging markets
- Visa said it doesn’t see an acceleration in global growth in 2015
- The revisions and details of the durable goods report were soft
Take away all those elements and the loonie doesn’t really have a leg to stand on. Exports need to pick up to either the US or emerging markets but both are moving in the wrong direction. The Bank of Canada is already sidelined (and might stay that way for 2 years) so where is the impetus for Canadian dollar strength?
Technical analysis
USD/CAD broke above the downtrend from the peak in March today but it still needs to climb above last week’s high of 1.0794 (and probably 1.0800) to get things moving to the upside. The 55-dma is also at 1.0798 so it will be a tough nut to crack.
USDCAD daily
