Talk about volatility. While dollar is trying to maintain its positions against the six major peers and stay up, there are currencies that are simply trying not to sink. And one of these currencies is CAD. Over the past 24 hours CAD has seriously tumbled given the fact that USD has only risen and the reasons for that are unclear for now. Of course political situation in the country is also not helping – the current Prime Minister of Canada is now hanging by the thread because of some old photos leaked to the press, but that is not the main and most powerful force driving CAD lower and lower. But the most powerful factor here is oil.
As we all know, CAD is very dependent on oil. And performance of the crude is determining the performance of CAD, and the fact that the price tumbled this week, as you can imagine, didn’t really help Canadian dollar in growth. Of course there are also fears about the future of trading relations of Canada with its main trading partner – the USA. The instability in their relations have started ever since Trump started trade war with all of the partners of USA.
CAD is in the special risk zone now and the fact that the currency is testing the support line is not helping with its reputation in the markets. USD/CAD trading has got to be one of the most volatile and difficult in the markets now.
Trading signals for the couple is one of our most popular, and that is saying something.