FXstreet.com (Córdoba) - The Canadian Dollar is rising sharply against Greenback on Monday. The global weakness of the Dollar, a rally in crude oil prices and better -than-expected data on the Canadian housing sector put pressure to the USD/CAD that tumbled. The pair fell from 1.0740 to 1.0549, posting a fresh 2-week low. Current price at 1.0559/62 is 1.46% below today's opening price.
If the pair manages to hold below 1.0575, the Canadian Dollar could rise further. To the downside the next support under 1.0150 lies at 1.0500/1.0495 and below at 1.0445.
Andrew Wilkinson, analyst at Interactive Brokers, affirms: The Canadian dollar has easily brushed off Friday's disappointing employment report and buys 94.62 U.S. cents. With job news often referred to as a lagging barometer of economic health, investors seem more willing to buy the Canadian dollar on increasing risk demand than sell it when data disappoints.
Michael J. Malpede, analyst at Easy Forex comments: Last week, Canada reported that August GDP declined by 0.1%, 0.1% is rise was expected. This marked the first monthly GDP drop since May and signals weaker outlook for Canada's recovery. The GDP decline reflects weaker demand for energy and manufacturing and the impact of strong CAD on Canada's export demand. Mondays' CAD rally may increase the risk of intervention and encourage BOC
officials to threaten action to weaken the CAD.