February 24, 2010
No thanks to risk aversion, in just a single day, the Loonie gave up all of its gains from last week. The USDCAD closed the US session 1.0567, 150 pips higher from its opening price during the Asian trading session.
The likely culprits for the unexpected spark in risk aversion yesterday were the worse-than-expected results of the CB consumer confidence report from the US and the news that Greece's top four banks have had their credit ratings downgraded.
Just like yesterday, Canada's economic cupboard today lacks any important data. This doesn't mean that the Loonie's price action will be contained though! The US has some major events scheduled at 2:00 pm today, namely the release of the new home sales report and a speech Federal Reserve Chairman Ben Bernanke, which would provide some direction for the Loonie.
"The only cable I watch is the pound baby."