The uptrend continues, proving more viable despite its weakness and despite all the risks to commodity assets, which were supposed to bring down the value of commodity currencies to multi-year lows. The incentives that the world economy received had a positive impact on the rates, and the perspectives of vaccination against the novel coronavirus inspired investors.
Oil has almost recovered from the collapse in prices in April and has not missed a chance to break the $50 mark. Perhaps this will happen next year, when everyone expects an improvement in the situation with the coronavirus and the end of the pandemic. This will certainly affect the cost of oil, and will also lead to an increase in demand. This means that the Canadian dollar will receive support in the long term, and according to the forecasts of the Bank of Canada, the growth rate of the economy will increase significantly.
In December, the demand for safe assets increased due to the emergence of a new, more contagious strain of coronavirus. The JPY managed to gain a foothold. In addition, the decline in the unemployment rate in Japan also allowed the yen to improve its position. Fears of a pandemic are also strong on the market. However, in the long run, we consider the deals in favor of the CAD to be more efficient. At the same time, during January the rates may drop slightly, since in January we do not see any prospects for improving the situation with the pandemic, and the rapidly mutating virus may become more stable. Most of the technical indicators prefer the deals to SELL in the H4 and daily term.
