USD/CAD up 30 pips to 1.2680 today
The Canadian dollar is down for the third consecutive day and trading at a one-week low.
I don't think it's a domestic story though, I spoke with Reuters yesterday and emphasized the growing worries about supply chain bottlenecks and how they will cool global growth.
We saw that in the Q2 Canadian GDP report as lower auto exports were a big drag due to production shutdowns. For most of the year, the market was seeing those bottlenecks easing in before year end but now it's looking increasingly grim, with some talk of them lasting all the way through 2022.
It will be interesting to see if the Bank of Canada touches on that subject in the statement. If not, Macklem is likely to address it tomorrow.
