In our most recent Weekly preview (published on Mondays), we asked the question:
So far this week, that uptrend has indeed been respected.
Yesterday (Tuesday, Dec 6), USDCAD has broken above the:
Why has the loonie been falling?
The CAD has been driven recently by softer oil prices and subdued risk sentiment.
Hence no surprise that the loonie has weakened against most of its G10 peers so far this month, except for the Norwegian Krone – another oil-linked currency.
Also, considering USDCAD’s gains in recent sessions, it appears that markets are expecting a relatively dovish decision by the Bank of Canada later today.