The USD/CAD pair fell for a second day on Tuesday, as optimism that a solution to Greece’s debt crisis is approaching overshadowed the worse than expected drop in U.S. consumer confidence, where risk appetite increased among investors as they targeted higher yielding assets, which boosted the CAD against the USD and pushed the USD/CAD pair to the downside.
Moreover, rising crude oil prices also provided the CAD with momentum to extends its gains for a second day against the USD, and that also contributed to the drop of the USD/CAD pair.
Investors will be focused on the outcome of Greek parliament’s vote for the new austerity measures, as passing the austerity measures should help in boosting risk taking among investors and that will push the USD/CAD pair lower, however, we should note that failing to approve the austerity plan will increase risk aversion in markets and that will push the USD/CAD pair higher.
Wednesday June 29:
Canada will release the Consumer Price Index for May at 11:00 GMT, where CPI is expected to rise by 0.3% in line with the prior rise, and compared with a year earlier, CPI is expected to rise by 3.3% also in line with the prior rise, and Core CPI is expected to rise by 0.2% in line with April’s rise, while compared with a year earlier, Core CPI is expected to ease to 1.5% from 1.6% in the prior estimate.
The United States will release the Pending Home Sales for May at 14:00 GMT and expected with 1.0% drop following the previous month’s slump of 11.6%.
Written by ForexMansion.com