The USD/CAD pair declined, as the Canadian dollar gained on lower US dollar, as several bond auctions supported the high yielding assets to hold on to the gains, where the Greek bonds saw strong demand while yields retreated slightly; however, the pair surrendered then some of the gains after the European Central Bank reported that overnight deposits rose this week to all-time record.
Eyes will be spotted on the performance of the European economy, especially after the ECB lent the European banks huge amount of money, and if that money will help the euro zone to continue recovery process amid big challenges.
The USD/CAD pair could still rise if pessimism continues to dominate markets, as uncertainty remains the main theme in markets, and that could also lead to deep fluctuations for the USD/CAD pair.
Wednesday January 11:
Canada will release the report of Housing starts for the month of December; it is expected to show a decline reaching 181.1 thousand units. Moreover, eyes will still focused on Europe and the crises that could cause any change in trading.
Originally posted here
