By FXEmpire.com
The USD/CAD pair continued to drop on Tuesday, as optimism spread through global markets amid speculations the Fed will announce more stimulus to help the economic recovery regain its momentum, where traders increased their bets of further monetary policy easing by the Federal Reserve Bank, which weighed down on the U.S. dollar, and provided the CAD with momentum to push the USD/CAD pair to the downside.
If the Fed announces QE3, we should expect the USD/CAD pair to extend its losses over the coming period, since it will weaken the USD and will also boost demand for riskier assets, which will provide the CAD with strong momentum to push the USD/CAD pair further to the downside.
Wednesday August 24:
The Durable Goods Orders are due from the United States at 12:30 GMT for July and expected with 2.0% rebound following 2.1% slump while excluding transportation expected with 0.6% drop following 0.1% rise.
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