The USD/CAD pair dropped though no data was released by major economies during the last trading day of 2011, noting that the Canadian dollar gained strength slightly, however worsening debt crisis in Europe made traders seek safe haven like the U.S. Treasuries during the last days.
Now, eyes will be spotted on the coming year, and the performance of the European economy, especially after the ECB lent the European banks cheap 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.
Tuesday January 3:
No economic data will be released from Canada so eyes will still focused on Europe and the crises that could cause any change in trading.