A weak JPY this afternoon is not paying dividends for the commodities currencies which appear to be in retrenchment mode short-term. USD/CAD has rebounded to test session highs at 1.0365, last seen when EUR/USD was down at 1.4845 this morning. Canada’s most high-profile commodity is soaring today, but having little impact on the Loonie. Oil is approaching the $78 level, prompting some CAD longs to sell, fearful that the commodities correlation is breaking down.
AUD/USD is holding up a bit better, trading at 0.9185 relative to morning lows at 0.9146, but well below 0.9210 afternoon highs.
The greenback has been gaining ground in the last 90 minutes or so versus the field except for Cable, which remains well bid on continued short-covering from medium-term accounts. It trades now at 1.6260.
