The USD/CAD pair inclined on Friday as the USD gained strength after The Daily Telegraph’s report said that the IMF will downgrade the global growth outlook for 2012 to 3.3% from 4.0%.
The IMF sees a 2.2 percent contraction for Italy and a 1.7 percent growth decline for Spain, as economies are weighed down by fiscal austerity measures, The IMF also urged the European Central Bank to boost liquidity to stave off a deeper Euro zone crisis.
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 23:
Canada will release the Leading indicators for the month of December, as it is expected to show an incline below previous, 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.