The new week started with USD-gaps across the board. USD/CAD did not succumb to the moment, considering that the US dollar slumped more than 2 figures against the Loonie on Friday. CAD gathered support from the better-than-expected GDP and employment data. The prospects of a rate hike from Bank of Canada are slim to none, but the Central Bank’s policymakers may speak well of the economic stance and macroeconomic data, which means the Bank may think about the tightening in the distant future. A noteworthy detail is that oil has not been a guaranteed CAD’s supporter recently, even though OPEC delivered last week.
The pair may try to conquer the mid-November highs at 1.2780 area, but the falling below the 1.2420 toward the pair’s October range is not ruled out. On the other side, the USD bulls may squeeze the most out of the US dollar’s performance and retake the 1.3060 level which will knock out the pressure.