The great mystery of the past two days was how the Canadian dollar could remain so solid with oil in freefall. It turns out, it was only a matter of time.
USD/CAD traded as low as 1.1752 as the US dollar slid on soft ISM data but a souring of risk appetite and a continued fall in WTI to below $48 per barrel was a ticking time bomb and the pair eventually climbed to 1.1820.
Corporate offers at 1.18 kept a lid on the pair for a period but eventually gave way. More, albeit light, stretch up to 1.1840 with larger sellers at yesterday’s high of 1.1844 and 1.1850 with buy stops above.
