FXStreet (Córdoba) – USD/CAD rebounded sharply during the American session and trimmed most of the losses. The pair bottomed earlier at 1.3010, the lowest level in a month but then rose more than 150 pips from the lows.
USD/CAD with a bearish bias, but rebounding
For the second day in a row the pair made a large rebound. Yesterday it was after the FOMC statement and Yellen’s press conference. Initially dropped to 1.3070 and then rose back above 1.3170. Today it plummeted to 1.3010 and then rose back toward 1.3150.
Despite the rally of the US Dollar during the American session, the short term trend still favors the loonie. The decline has been constant but with strong corrections. The last correction was boosted by a recovery of greenback across the board and also by a decline in crude oil prices. The WTI barrel fell from $46.50 to $45.00, the lowest level since Wednesday.
USD/CAD: Second negative week in a row
The pair currently trades at 1.3150, a hundred pips below the level it had a week ago. It is headed toward the second weekly decline in a row as it continues to correct from multi-year highs. Since June that the USD/CAD did not fell for two weeks in a row.
(Market News Provided by FXstreet)