The USD/CAD pair rebounded to the downside on Friday, following optimism spread through markets after the European leaders were able to create a strong firepower to stop the debt crisis. Next week, all eyes will be on European leaders as they rush to finalize their comprehensive plan and act on measure implementation.
Traders will continue to monitor the developments from the 17-bloc euro nation and the European leader’ latest moves to contain the debt crisis, where we expect volatility to persist through the sessions this week, especially with eyes wide-opened on the European bond auctions, hoping bond yields will fall this time after European leaders agreed to drop the private sector’s involvement in the cost of bailouts needed to safeguard the Europe’s indebted nations from falling down.
The USD/CAD pair could still drop if the optimism continues to dominate markets, but we still expect volatility to hold the steer for now, as uncertainty remains the main theme in markets, and that could also lead to deep fluctuations for the USD/CAD pair.
Monday December 12:
The United States will kick off next week with the monthly budget statement for November at 19:00 GMT, where the budget deficit could have narrowed to $140.0 billion from $150.4 billion.
Originally posted here
