EUR/CAD bounces back after drop on Friday
There has been some volatility today but the overall moves are small. The loonie is particularly soft on NAFTA worries while the euro is modestly strong.
EUR/CAD daily:
The daily chart shows a solid uptrend with a break of the November high earlier this month.
It's been a steady rise in the pair but Friday's drop was worrisome. From here, I think the Canadian dollar is in a dangerous spot.
The NAFTA risks are two-sided at this point and perhaps tilted towards CAD strength because the fears are overdone.
On the euro side, the optimism is priced in and it's a waiting game for the ECB to shift. There is always the risk of inflation disappointment.
Technically, the uptrend is intact but looks like it's losing a bit of steam.