FXstreet.com (Barcelona) - The cross is extending its impressive upside on Thursday, sparked in late April when it was trading around 0.9810, eyeing the key level at 1.0300 as risk aversion is propelling the greenback to new highs.
In the opinion of C.Sutton, Chief Currency Strategist at Scotiabank, shrinking risk appetite, Chinese recent comments ruling out further stimulus to its economy and a mixed bag of results in the US fundamentals as of late, constitute quite a burden for the CAD.
The expert assesses that bursts of risk aversion could drive USD/CAD to 1.07 in the actual context of uncertainty aggravated by the euro zone crisis; but she goes on saying that "…however once risk aversion passes we would expect the relative fundamentals of the Canadian backdrop to shine through bringing USD/CAD back to parity…"
The next big event for the Loonie will be the BoC monetary policy meeting, due next week. Market participants expect the central bank to leave the cash rate intact at 1.0%.
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