Expected USD/CAD Range: 1.058 – 1.064

Update: Despite strong GDP figures in Canada on Friday and strong oil prices, the Canadian Dollar traded down on low volumes due to the US holiday. The Loonie is now trading at 1.063, the weakest level in approximately two years. The market is now focused on the heavy schedule of data expected out this week. By the end of the week, we should get a good renewed picture of the strength of the US economy. Here at home, the Bank of Canada’s monthly rate decision is scheduled for Wednesday and is not expected yield any surprises.

The Big Picture: Canada’s new central banker is cautiously optimistic about the economy but shows no inclination towards raising rates in the next several quarters. In fact, the low dollar policy being pursued by the bank suggests …

Expected USD/CAD Range: 1.055 – 1.060

Update: Canada’s economy grew at an annualized rate of 2.7% in the third quarter, the fastest quarterly growth rate in two years, and well ahead of a consensus estimate of 2.5%. There was a slight downward revision to the second quarter growth rate but the net result of the release is a brighter picture of the Canadian economy than most expected. Strong growth was recorded in household expenditures while exports continued to decline. With US markets in holiday mode, this is likely to be the dominant story for the Canadian Dollar for the rest of the day. The Canadian Dollar reacted immediately by gaining 15 pips and we expect it to continue to strengthen for the rest of the day.

The Big Picture: Canada’s new central banker is cautiously optimistic about the economy but shows no inclination towards …

Expected USD/CAD Range: 1.057 – 1.062

Update: The Canadian Dollar is now comfortably trading at the lowest level since June of 2010. The immediate reasons are the lower price of oil since the nuclear agreement announced this weekend and the upward revision of Q2 current account deficit announced this morning. There is also renewed attention being paid to the Goldman Sachs report out earlier which identified shorting the loonie as one the firm’s top investment ideas for 2014. The move fits with our long held view of the Canadian Dollar weakening over the longer term. However, we continue to see the recent leg up as too far too soon and would suggest that US Dollar sellers take advantage of the situation.

The Big Picture: Canada’s new central banker is cautiously optimistic about the economy but shows no inclination towards raising rates in the next several quarters. In fact, the low dollar policy being pursued by the bank suggests …