Fxstreet.com (Barcelona) - After rising 0.45% so far today from 1.2183 opening session price, the USD/CAD is testing 1.2250 again. Since the beginning of the European morning the pair has been traded in a small range between 1.2210 and 1.2250. Currently the pair is trading around 1.2235/45.
Yesterday the pair rose 0.44% from opening price at 1.2131, reaching 1.2218 as maximum and 1.2077 as minimum, to close the day at 1.2184.
The Union Bank of California Team says: The loonie saw a 2.3% gain vs. USD last week. Crude oil ranged between $46.50 and $51.55 with natural gas posting continued declines for a seven-year-low of 3.23. Canadian Industry Minister Tony Clement said last week that he wants to hear this week from the Canadian Auto Workers and the local operations of General Motors Corp. and Chrysler LLC. Clement said he wants clarity from both sides as to whether they will be able to reach a cost-cutting agreement, or if the companies will be forced to seek bankruptcy protection.
And the Team conclude: Canada's dollar strengthened from a three-week low as easing concern about the level of capital at US lenders overshadowed the BoC's reduction in its key interest rate to a record low. CAD fell 0.9% earlier after the Canadian central bank cut its target rate for overnight bank loans to 0.25%â€”the lowest since the institution was established in 1934. Expect the Loonie to remain strong in the midst of adjusting US risk outlook and the future prospects of GM & Chrysler.
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