The Loonie rallied in the overnight trading session. It has been a week without many Canadian events on the schedule, except for retail sales on Wednesday and both manufacturing sales and wholesale trade sales on Tuesday, which were not good news for the Canadian Economy. All things considered, the Loonie has depreciated only 0.2 percent against the Greenback so far since the start of the week. However, it has performed better than the Japanese Yen (+0.6 percent) and the Aussie dollar (+0.3 percent) during the same period.
We will receive news about the Canadian economy next week, with the release of the monthly GDP and the yearly GDP report on Thursday. Part of the Loonie’s rally overnight was encouraged by a slight bounce of crude oil WTI, which at one moment earlier today touched 53.69 US dollars a barrel, but it is trading at around 53 dollars at the time of this writing.
Technically speaking, the USD/CAD is making patterns that indicate that if it stays below the 1.3300 handle, it might continue to the 1.3200 handle (stronger Loonie). However, if it trades above 1.3375, it would have space to go higher, probably close to 1.3500 (weaker Loonie). The USD/CAD pair is trading at 1.3283, which is a 0.50 percent fall (strong Loonie) at the time of this writing.