The Canadian dollar lost more ground to the US dollar and USD/CAD is now almost at 1.04. The peak was 1.0395, and the pair is still in that vicinity. At current levels, this is the highest for the pair since early June 2012 – almost one year.
The most recent catalyst for the loonie’s descent was the release of a very strong consumer confidence report in the US.
The CB Consumer Confidence jumped to levels last seen in February 2008, similar to the lows seen in jobless claims, that were the lowest since that period, when Bear Sterns went under.
Not only was the 76.2 score a five year high, but it also was significantly above expectations of 70.7. Also the previous number was revised to the upside. This increases the speculation that the Federal Reserve will wind down the QE program sooner than later.
The strength of the US dollar weighed on the Canadian dollar. This is an important week for the loonie: the Bank of Canada will make its last decision under outgoing governor Mark Carney. No change in policy is expected.
And on Friday, Canada will publish the GDP report for the month of March, concluding the first quarter of 2013.
The next important level is 1.0446 – the peak seen at the end of May / beginning of June 2012. Support is at 1.0360.
For more, see the Canadian dollar forecast. Here is a live chart of the pair:[do action=”tradingviews” pair=”USDCAD” interval=”60″/]