By FX Empire.com
The USD/CAD pair rebounded to the downside on Monday, as investors are focused on Italy and Greece, where the political instability in the nation is stalling the reform which is forcing the nation to remain vulnerable to speculation and market pressure which already sent its borrowing costs to record. The G20 leaders pressed Silvio Berlusconi to act quickly as he agreed to allow the monitoring of EU and IMF to the reforms to ensure their swift implementations.
The focus remains on Europe and the ongoing crisis as the finance ministers meet inBrusselsand their decisions undermined by the ongoing uncertainty in Greece and now Italy.
Moreover, jitters from Europe continued to dominate the global scene on Monday, where traders will still concerned that Greece could be heading into a disorderly default, and that possibility 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:
No economic data is scheduled for release from the United States.
Canada will release the housing starts for October at 13:15 GMT, where housing starts are expected to reach 195.0K in October.
Originally posted here
