The USD/CAD pair inclined as the USD gained strength after markets turned pessimistic on reports came out lately showing that S&P will move forward with euro area downgrades with French TV saying that the nation lost its top credit rating.
Knowing that investors moved towards low yielding assets with European stocks snapping the gains. The news reports suggested that Standard & Poor’s is set to downgrade the credit rating of several euro zone nations according to government sources, and that overshadowed the upbeat Uni. of Michigan Confidence index.
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.
Monday January 16:
Canada will have no data released on Monday, noting that Monday will be holiday for US economy as January 16 is Martin Luther King Day, so eyes will be focused on Europe and the crisis that could cause any change in trading.