USD/CAD Continues to Hold Steady as New US Data Is Anticipated
The USD/CAD pairing moves sideways, keeping very close to 1.2040 recently. Change is expected when U.S. data releases later in the week, including New Home Sales data and the Conference Board’s Consumer Confidence Index.
The US dollar index continues to stay below 90.00, continuing the currency’s struggle to get much demand. The dollar index lost 0.22% and is down 9.28% for the year.
The Canadian dollar has not done as well as it could, due too decreasing crude oil rates. Oil is one of the major economic exports that Canada relies on, and recent struggles there have stifled the Canadian dollar’s ability to flourish. While some analysts expected the Canadian dollar to start outperforming the US dollar by this point, that has not happened yet.
The Canadian economy has managed to open up and grow at a faster rate than the US economy call which is led to a strong performance from the Canadian dollar recently. However, what the US starting to open back up in a big way, the tables could turn very quickly. We could see a very strong U.S. dollar in a matter of weeks as more states continue to ease Covid restrictions.
Investors should be looking forward to the US data to be released later in the week to see movement on the US dollar compared to its Canadian counterpart. Foreign exchange traders are looking for major movement later in the year when US inflation data is released on June 10th.
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