The USD/CAD pair gapped lower at the open on Monday, and drifted a little bit lower. Ultimately, this is a market that should continue to fall towards the 1.2650 level next, and then perhaps even lower. Remember that oil markets have a massive influence on the Canadian dollar, so having said that the market will be volatile and at the mercy of the petroleum industry, but at this point in time it does look like we are going to drift lower for the short-term at the very least. Longer-term, it’s much more of a mixed picture.
