The USD CAD is mounting a strong closing price reversal bottom.
The USD CAD is mounting a strong closing price reversal bottom. Short investors were getting nervous about holding positions so close to parity and decided to take profits. Some traders feared the Bank of Canada would step in to stop the rally in the Canadian Dollar following comments earlier this week from Prime Minister Harper. He stated his concern that a high priced Canadian Dollar could have a detrimental effect on Canada’s ability to recover from the recession. The lack of demand for higher risk assets is also having an effect on prices; however, the surge above $76.00 in crude oil has helped to limit losses.