USD/CAD: Primed for a move lower as the loonie anticipates the global recovery

USD/CAD settled at the three year low and support of 1.2620 on Friday. The technical position of the pair is weak and fundamental analysis agrees, Joseph Trevisani, an Analyst at FXStreet, reports.

Key quotes

“Even a healthy resumption of US growth, by no means assured, would have limited positive impact on the USD/CAD. As the largest trading partner of the US and a resource supplier to the world's largest economy, Canada and its currency actively participate in American success.”

“There is weak support at 1.2590, the January low, but nothing of consequence beneath. The combination of technical weakness for the USD/CAD and fundamental strength for the Canadian dollar likely spells further for the US dollar losses against its northern cousin.”