If the Canadian dollar successfully opposes the USD, then the situation versus the euro will be even more obvious. The rates took a downward course a year ago, and they are still relevant. It was not possible to exceed the minimum level for 6 years in November, but everything is possible this year, and the Canadian dollar is already on the way on achieving new minimums. According to the forecasts, 2022 will be favorable for the Canadian dollar. The Bank of Canada will return to its aggressive monetary policy and will compete with the US Federal Reserve, but the ECB will hopelessly lag behind in this race. In terms of oil prices, everything is also in favor for the Canadian dollar, because black gold's prices are continue rising in the new year.
Volatility shall be considered high enough for this time of year and the lack of macroeconomic reports will not prevent this. Coronavirus remains a key driver for the market, along with news about the monetary policy of central banks. Next week, reports on unemployment in the EU, the consumer price index in the EU and Canada, as well as a series of reports from China, which can seriously affect the cost of oil and the demand for risky assets, are added to this.
At the moment, analyzing the chart, we consider that the most reasonable decision is to open the deals to SELL, in favor of CAD. Most technical analysis tools also consider deals on the trend the most effective for today.
