5.06 - USD/CAD is giving into horrid falls
- by Anna K.
USD/CAD is one of the most volatile couples in the market this week. And there are several reasons behind it. For starters USD keeps on getting the evil eye from traders all over the world as their trust into the greenback is seriously damaged with Trump imposing tariffs on Mexico and extending trade war to even more participants. Of course USD is far too influential and too big for the trust to it to be dropped completely but it is safe to say that the level of this trust has shrunk by a lot. And CAD hasn’t been the example of stability due to the falling prices for oil. But as the crude consolidates we see that recovery is possible for the couple. Of course the more the couple is growing the worse the situation is for the CAD itself, but what are we gonna do?
The performance of the USD/CAD can hardly be named stable today. We are looking at a lot of ups and downs and it can get in the way of trading for us. One can say that there is a struggle between the greenback and oil and although the two assets used to go hand in hand we are now seeing that their relationship is changing – the higher oil goes the lower the greenback is going.
And so with huge jumps and gaining oil it seems that USD is going to have to get used to the falls like that. USD/CAD is very volatile with no definite direction. Trading signals is just what we need to feel safe in the markets today.