FXstreet.com (C�rdoba) - After bottoming out at 4-year lows late last month near 0.9400, USD/CAD rallied about 6.5% into August 9th to briefly poke through 1.0000 for the first time since early Feb, although with today's weakness, the US dollar has surrendered a little more than a third of its rise, said Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman.

According to Mr. Chandler, there is scope for additional Dollar losses against its Canadian counterpart. "While the 0.9700 area draws immediate attention, there is potential toward 0.9640 in the coming days," he said.

This constructive view of the Canadian dollar is partly predicated the return of greater stability to the equity markets in general and the US S&P 500 in particular, according to Chandler, as in the current environment equities are more important to the Canadian dollar than oil.