The pair is testing the 23 Nov lows at the moment
The dollar may be king for the day, but it's throne is being threatened by the loonie. USD/CAD is on the decline, helped a little by talks earlier between Chinese Premier Li and Canadian PM Justin Trudeau - as China is said to be open to talks with Canada on a free trade deal.
With the USD having given up a bit of its gains in the last two hours, CAD bulls have certainly taken advantage of that. Remember, on Friday the CAD was the biggest gainer following positive jobs data and GDP numbers.
It was enough to send the pair down from 1.2880 all the way to 1.2700, of course with a little help from the Flynn report as well. Either way, the selling is starting to resume.
And if the 23 Nov low breaks, there could be a free fall down to the 1.2600 level as the next psychological support barrier.
