A US-funded Canadian M&A deal is creating big demand for the Loonie as has been the case for the last several days. More demand for CAD is rumored at the fixing later on this morning, either at 11 am New York time or at Noon at the Toronto fixing.
One political factor that could undermine the Loonie is President-elect Obama’s pledge to renegotiate the North American Free Trade Act (NAFTA). With Canada a huge net-exporter to the US, any change in trade law could undermine the CAD.
Next support for USD/CAD is the 1.1315/30 area.
