Price swings in the dollar against the yen measured by options fell to a record as signs of an uneven U.S. economic recovery fueled bets the Federal Reserve will keep borrowing costs at unprecedented lows.
The USD/CAD has been trapped within a meaningless 40-pip range just above 1.1000 thus far this week, but by taking a look at the last few years of price action, we can see that the pair remains in a long-term uptrend
Earlier today, the U.S. currency rose against most major currencies as expectations that the Federal Reserve will continue to scale back its stimulus program this week fueled demand for the greenback. What impact did these moves have on major currency pairs?
Canada is a major producer and exporter of natural resources, which means its currency is closely tied to the fortunes of commodity prices. With signs that the commodity super-cycle is fading, it is likely that CAD will notch up further losses over the course of 2014.