The Canadian markets were in for a wild ride Friday. A global rush of risk aversion and a full economic calendar stoked volatility but did little for providing any definite direction for the markets going into the week.
While the economic calendar was offering up the monthly trade account to fundamentalists, the dollar’s strength seemed to originate more from a global swell of risk aversion.
The dollar fought hard for its gradual gains against the majors through May, and yet market forces may erase the entire move in mere days if the recent correction sustains its heady clip.
The economic calendar was not very favorable for the US dollar at the start of this new week, though the currency's weakness was clearly visible well before the release of this morning's only indicator.
Now with the calendar clearing up for the week ahead, natural market forces will have to push the currency out of limbo without the aid of a momentum-unifying key indicator.
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