Interesting that USD/CAD is hanging in there above 1.0300 today despite the big uptick in risk appetite so far this week. Oil is at its highest level in weeks, toward the top of recent ranges, at $77.25. The market is all but assured of a 25 bp hike from the BOC next week and many expect more hikes to come later in the year.
The buck probed below 1.0300 to 1.0280 at midday. Yesterday we reached 1.0294.
1.0255/60 is next support for the tentative Loonie. Multiple lows are eyed between 1.0110 and 1.0180.
The best way to characterize USD/CAD is to say it looks as though the “easy” money has been made for this move down from the 1.06s. The buck could continue to slide but it will be a more difficult path from here.
