By FX Empire.com
The USD/CAD pair rebounded to the upside on Wednesday, as investors are focused on Italy and Greece, where the political instability in both nations is in fact stalling the reform which is forcing the nation to remain vulnerable to speculation and market pressure which already sent its borrowing costs to record.
Accordingly, traders are demanding safer havens and are mostly less appealed to higher-yielding assets on Wednesday.
Moreover, jitters from Europe continued to dominate the global scene on Wednesday, where traders will still concerned that the debt crisis could spread into other nations in the euro zone region, which put more negative pressure on the Canadian dollar to send the USD/CAD pair higher.
Traders will continue to monitor the developments from Europe regarding the debt crisis, especially amid the lack of major economic data from Canada and the United States, but overall, we expect the USD/CAD pair to extend its gains over the coming period.
Tuesday November 08:
Canada will release the international merchandise trade balance for September at 13:30 GMT, where the trade deficit is expected to narrowed to 0.56 billion CAD from the prior deficit of 0.62 billion CAD.
The U.S. trade figures are due at 13:30 and the trade deficit in September is expected to widen to $46.0 from $45.6 billion.
The weekly jobless claims are also due at 13:30 GMT, after the latest report signaled a gain of 397 thousand.
Originally posted here
