“¢ Guajardo sees a high chance of a US-Canada trade deal and lifts Loonie.
“¢ Bullish oil prices/post-PPI USD retracement adds to the selling pressure.
The USD/CAD pair finally broke down of its daily trading range and weakened below 100-day to fresh monthly low.
The latest leg of sudden fall of around 60-pips over the past hour or so was could be attributed to positive comments by Mexico’s Economy Minister Ildefonso Guajardo, saying that there is a high chance of a possible US-Canada trade deal.
The comments eased NAFTA uncertainties, which coupled with the ongoing bullish run in crude oil prices boosted demand for the commodity-linked currency – Loonie and exerted some fresh selling pressure around the major.
Meanwhile, the US Dollar extended its retracement slide led by an unexpected fall in the wholesale price of US goods and services in August, for the first time in 18-month, and did little to stall the ongoing slide back closer to the key 1.30 psychological mark.
Technical levels to watch
A follow-through selling below the 1.30-1.2990 immediate support might turn the pair vulnerable to extend the downfall further towards testing the 1.2900 handle. On the flip side, a sustained recovery move back above 1.3040 area (100-day SMA) could assist the pair to aim back towards reclaiming the 1.3100 handle.
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