USD/CAD rises 80 pips from the lows
Talk about soft OPEC targets, the lack of non-OPEC participation and rising Saudi exports to China have weighed on oil prices in the past hour and, in turn, that has helped to boost USD/CAD.
WTI crude fell below $50 to $49.76 from $50.50 in the past hour after briefly touching a marginal session high of $50.53.
The drop in oil has helped USD/CAD from a session low of 1.3055 up to 1.3133. The low came after a strong Canadian manufacturing sales report and initial US dollar selling on CPI data.
The extra volatility in the Canadian dollar may be partly due to the looming Bank of Canada decision. Expectations for any change in the 0.50% overnight rate are minimal but the BOC is likely to downgrade growth and inflation forecasts and may take a more dovish slant.
