Technical analysts at MIG Bank note that the greenback broke through support at 1.0057 trading versus its Canadian counterpart. The pair USD/CAD is now risking to test support in 0.9978/30 area. If the rate fails to hold here, it’ll fall to 0.9819/0.9710. Such outcome seems inevitable unless US dollar rises above 1.0210.

Strategists at Barclays Capital expect loonie to gain in case US economic data turns out to be positive today as US and Canada’s economies are strongly connected and Canada’s free of worries about the monetary stimulus that tend to affect the greenback. Never the less, the specialists believe that the Bank of Canada will decide at its meeting next week to continue keeping monetary policy loose as the recent increase of inflation was driven by housing costs. As a result, Canadian dollar may find itself under pressure, says Barclays Capital.

More info about FBS