Fed Green Lights Canadian Dollar Rally

Last week’s news that the Fed was gearing up to applyadditional quantitative easy in an effort to keep the U.S. economy from derailing, helpedboost the Canadian Dollar.

Last week’s news that the Fed was gearing up to applyadditional quantitative easy in an effort to keep the U.S. economy from derailing, helpedboost the Canadian Dollar.

Speculation that the Federal Reserve is willing to easemonetary policy further spurred demand for assets that benefit from globalgrowth. This pressured the Dollar/CAD for a fourth week, putting it in aposition to challenge the recent swing bottom at 1.0190 and setting up apotential break to the next level at 1.0107.

Strong rallies in U.S. equity markets and a late inthe week boost in crude oil also contributed to the Loonie’s rise. Increasedrisk appetite should keep upside downside pressure on the Dollar/Cad this week.

Overnight, flat equity markets are helping to hold the USDCAD steady, but downside pressure may be limited if crude oil remains firm.