The USD/CAD pair did very little during the session on Friday, as we continue to tread water just above the 0.99 handle. The range has been fairly tight over the last several sessions, and it appears that this market is simply going to sleep. This pair does is a lot, and then will suddenly take off in one direction or the other. We feel that the US fiscal talks are probably keeping this pair from going too far in any particular direction.
As the two economies are intertwined, a positive resolve out of the negotiations in Congress right now would of course in this pair down as risk appetite would float the Canadian dollar higher. As the 0.99 handle is so supportive, any move below that should send this pair falling rather rapidly.
Written by FX Empire