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The U.S. dollar index fell on Monday. Now this is only correction - 7.1.2014
The business activity index for Canada comes out at 15-00 GMT (0). We do not exclude that it will be positive. It can increase (decrease in the chart) Canadian (USDCAD) Dollar price. Note that according to the CFTC, the volume of short positions on the Canadian dollar is three times higher than the volume of long positions. If Loonie starts getting stronger, the movement can be enhanced by triggering stop-loss orders. However, it is not easy to predict the further trend. In part, bears have a support from the government, which rightly believes that the low rate helps the growth of industrial production. We do not expect that the Canadian government will move from words to action right now. The Central Bank meeting is to be held on January 22. The overnight target rate is 1%. It has not been changed since September 2010 and is unlikely to change after the forthcoming meeting. On January 10, there are unemployment data on Canada for December expected. They can affect the exchange rate British pound (GBPUSD) continued its decline against the U.S. dollar. The services PMI in the UK was worse than the preliminary forecasts. Note that the Bank of England performs the asset purchasing by printing money, as well as the U.S. Federal Reserve and Bank of Japan. The total volume is set at 375 billion pounds. It is not expected to change. Next Market Overview (GMT+0, Greenwich): 11:00
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