CAD is the weakest among G10 – BBH

By FXStreet Analysts at Brown Brothers Harriman explained that dragged lower by oil and widening interest rate differentials, the Canadian dollar’s 11.3% loss from mid-October through January 20 made it the weakest of the major currencies.

Key Quotes:

“It snapped dramatically back over two and a half weeks. It appreciated nearly 7%.

The US dollar spiked to CAD1.3640 on February 4.

The 6.18% retracement objective is found near CAD1.3540.

The divergence of the US and Canada’s labor markets, wider rate differentials, weaker stocks, and oil, saw the Canadian dollar soften by almost 1% before the weekend, and it finished poorly.

There is a reasonable chance the US dollar’s downside correction is over.

A move above CAD1.3930 would lend credence to this view, with a move through CAD1.40 targeting CAD1.4160 initially.”
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Source:: FX Street