The USD/CAD pair fell on Friday after a wave of optimism started to spread through European and U.S. markets amid reports EU officials are discussing more measures to ease the euro zone debt crisis, which overshadowed earlier pessimism that dominated markets after yields on Italian bonds soared after a bond auction, reflecting the ongoing concerns that the European debt crisis is worsening.
Traders will continue to monitor the developments from Europe regarding the debt crisis, where rising yields in Europe suggest investors are concerned amid the uncertainty that is surrounding the outlook of the EU debt crisis.
The USD/CAD pair should still be able to rise if concerns from Europe continue to dominate global markets, but we still expect volatility to continue to dominate trading, as uncertainty remains the dominant theme in markets, and that could also lead to high levels of fluctuations for the USD/CAD pair. But overall, we expect the pair to extend its gains over the coming period.
Monday November 28:
The United States will join the session at 13:00 GMT with the new home sales figures for October, with expectations that the number on new homes sales could retreat to 310 thousands from the previous 313 thousands, while the monthly new home sales index could have dropped by 1.0% from 2.3%.
Originally posted here
