USD/CAD reverses rise on another fall in inventories, weak
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USD/CAD reverses rise on another fall in inventories, weak

The Canadian dollar certainly sees volatility. The move lower in CAD (higher in USD/CAD) was reversed quite quickly as data impacts the pair quite strongly.

At first, Canada reported a bigger than expected trade deficit of 3 billion. This hurt the loonie which hot higher to 1.2508. This was also helped by a smaller  trade deficit in the US and an OK ADP NFP. Yet this didn’t last too long.

But then, the  weaker than expected ISM Non-Manufacturing PMI in the US was accompanied by yet another fall in oil inventories. For yet another week, inventories dropped and this time by 1.95 million.

USD/CAD continued south to 1.2410. Can it fall to lower ground? The Canadian dollar suffered quite a lot in recent weeks, due to poor data and a comeback of the US dollar.

However, oil prices were quite stable on higher ground, but that wasn’t really reflected in the value of the C$. Towards OPEC’s meeting on Friday, it seems that no changes are expected in the cartel’s policy.

So, the focus is likely to remain on Canadian and US fundamentals, most importantly the simultaneous  employment reports due on Friday at 12:30 GMT.

Here is how this volatility looks on the chart:

Dollar CAD June 3 2015 high volatility and falling down


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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.