Monday, 31 Aug 2009

CAD Selloff Takes Place before US-Canada Market Open

The opening of the forex trading week has had some distinct impacts on a number of currencies. The USD has experienced a steady uptrend versus a number of its primary currency rivals, particularly the EUR and CAD. The results of Japan's recent elections, where the rival Democratic Party won power for the first time in decades, has the JPY in a sustained bullish channel against all of its rivals. However, JPY optimism came to a screeching halt this morning as Japanese unemployment and lowered exports put a damper on the election results.

As the US markets open at 12:30 GMT, many are expecting a continuation of USD strength. The Canadian GDP figures may show that Canada's production levels have risen slightly, but recent price behavior of the CAD is suggesting otherwise. The Loonie appears to be losing ground against many of its rivals indicating a sell-off prior to the GDP report due at 12:30 GMT. Pay attention to this indicator as it may have a significant bearish impact on the CAD, and the USD/CAD pair may rise to a monthly high.