EUR/USD continues its steady, if unspectacular, grind lower this morning, easing to 1.4053 so far. The latest catalyst is a 5%+ decline in oil prices (to $63.85 from near $69 yesterday) as the combination of risk-aversion and larger-than-expected inventories helped undermine crude.
USD/CAD is in short-covering mode, it should come as no surprise. The combination of dollar strength, commodity weakness and risk aversion are pushing USD/CAD back toward the 1.0905 level that capped yesterday’s spike. Stops are eyed above that level. USD/CAD trades now at 1.0885.
