The USD/CAD pair declined as the USD lost strength after markets turned flat on Monday, as Euro managed to cover the gap that has emerged over the weekend after France lost its top credit rating AAA, while eight other European nations saw their credit ratings being cut by S&P on Friday, knowing that the American market is closed on Monday, as this day is Martin Luther King Day in the United States.
On the other hand, the sentiment improved further in the market after the French bond auction, which came better than expectations, as the country was able to access the capital market easily on lower yields and strong demand despite the fact that Standard and poor’s rating agency downgraded the French top credit rating of AAA by one notch to AA+.
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.
Tuesday January 17:
Canada will release the rate decision, so fluctuating trading in the pair is expected, and eyes will be focused on Europe and the crisis that could cause any change in trading.
Originally posted here
