By FX Empire.com
The USD/CAD pair rebounded to the downside on Friday, where the U.S. dollar weakened against major currencies after the ECB announced it bought bonds in the secondary market to ease mounting fears over the outlook of the euro zone debt crisis. Moreover, the U.S. leading indicators rose above projections, which provided investors with hope over the outlook for the world’s largest economy.
Meanwhile, Canada released the CPI for October, where CPI eased in October but CPI inflation rose above expectations, which provided the Canadian dollar with bullish momentum that pushed the USD/CAD pair to the downside. Moreover, the leading indicators in Canada rose in October above median estimates, which also put negative pressure on the USD/CAD pair.
Traders will continue to monitor the developments from Europe regarding the debt crisis, where anxiety remained high amid the high level of uncertainty over the outlook of the euro zone debt crisis. The USD/CAD pair should still be able to rise if concerns from Europe continue to dominate global markets, but we still expect volatility to continue to dominate trading, and that should also lead to high levels of fluctuations for the USD/CAD pair.
Monday November 21:
Canada will release the wholesale sales index for September at 13:30 GMT, which is expected to rise by 0.5% following the prior rise of 0.2% in August.
The United States will join the session at 15:00 GMT with the existing home sales figures for October, with expectations that the existing homes sales could have retreated to 4.80 million houses from 4.91 millions. In addition, the monthly existing home sales index could show that sales dropped by 2.2% from the previous drop of 3.0%.
Originally posted here
