USD CAD Remains in Weak Position

The USD CAD continued to weaken throughout the early part of thetrading session. Weakening equity prices are helping to limit losseshowever.

The USD CAD continued to weaken throughout the early part of the trading session.  Last week’s bullish Canadian unemployment report and higher energy prices have helped to drive this currency pair to a new low for the year.  Weakening equity prices are helping to limit losses however.

Technically, the USD CAD trend remains decisively lower and is in no danger of reversing to the upside unless it mounts a huge rally which triggers a close over 1.0317.  A huge sell-off in equity prices late in the session could trigger such a move.