The Canadian dollar could not stay immune to the influx of bad news from the old continent and continued falling against the greenback. USD/CAD broke another resistance level and continues rising sharply. Update.
The better-than-expected manufacturing PMI in the US provided some good news for Canada as well. Stronger demand from the US helps the Canadian economy as well. Well, this wasn’t in the spotlight.
The Greek crisis, which reached new heights, sent all “risky” assets down. A possible resignation of the Greek Prime Minister and a possible bankruptcy of the large European bank Dexia sent the US dollar higher, and the Canadian dollar reached new lows against it.
See the European crisis recap for a summary of all the news. The price of oil also followed suit, and as an exporter of oil, the loonie just found another reason to fall.
At 1.0540, USD/CAD is at the highest levels seen since September 2010. It paused around resistance at 1.0510, but not for long. The next serious line is 1.0677, which capped the pair more than once. Yes, a long time ago. Further above, 1.0750 is another hurdle. 1.0510 turns into minor support. 1.0373 is more significant.
For more levels and events, see the Canadian dollar forecast.
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