Modest bounce in oil sends USD/CAD much lower
USD/CAD is down 80 pips from when North American traders began to arrive at their desks. The pair rallied as high as 1.3152 early but has been under steady pressure as oil climbed to $41.64 from $42.69.
That's a modest rebound in oil and suggests flows in a light market are a bigger part of the story than oil alone. Others have argued that USD/CAD is a leading indicator for oil prices, so we'll see if that plays out.
In any case, there are reported bids at 1.3050 followed by corporate bids at 1.3000/1.2990 with stops below. There are buys stops above 1.3160.
Technically, there isn't a heck of a lot going on in the pair. We're right in the middle of the recent range despite the reversal today.
Greg took a closer look at the USD/CAD technical analysis earlier.
