The USD/CAD pair fell, and then found support at the 0.9800 level on Thursday. The pair is bearish overall, but over the course of the last couple of weeks has found a bid. The oil markets and the Jackson Hole announcement will be key for this pair. The thought of QE3 will weaken the USD against most currencies, and the Loonie will certainly be one of them. If the QE3 plans are announced, oil will move higher, and as a result – so will the CAD, which means this pair falls. If not, we could see an attempt to break parity.
Written by FX Empire