USD/CAD is trading well below 1.20, and falling towards teh lows seen in the previous fall down. Can it hit the lowest levels since January? Update: the pair hit a low of 1.1941, 2 pips below the previous low and at the lowest since January.
The background is good Canadian data and yet another USD sell off.
The Canadian Ivey PMI jumped to 58.2 points – more than 10 points from the previous level of 47.9 and well above expectations for around 50 points. Despite its volatility, the figure has an impact as it is a forward looking index.
On the other hand of the equation, the US dollar is in a free fall, especially due to the poor ADP NFP. If we get a second consecutive weak NFP on Friday, the markets could speculate about the Fed putting off a rate hike this year, and this takes away the USD bullishness.
The US dollar is very weak across the board, with a significant breakout also against the euro.
Here is how it looks on the daily chart:
more coming
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