Forex Flash: CAD to remain driven by euru and USD moves - Commerzbank
FXstreet.com (Barcelona) - The USDCAD traders priced in the surprisingly high November budget deficit in the USA and the CAD 2B trade deficit in Canada. "Even though the exports to the US rose, exports to the rest of the world fell to the lowest level since September 2010", wrote analyst Antje Praefcke. "As a result Canada saw a record deficit of CAD 5.3bn with the rest of the world. Farm, fishing and intermediate food products were the main causes for the fall in exports", added the Commerzbank analyst, pointing to unattractive Canada data this week (business outlook, home sales, manufacturing sales), giving the lead to US data. "As a result the CAD will remain driven by euro and USD moves", Praefcke concluded, as he observes strong EURCAD upside movements, driven to almost 1.32.