USD/CAD is running to the highs of the day, up to 1.0338 from 1.0310 earlier.
Think of Canada as a levered bet on the US. With the economy struggling and Congress doing its best to make it even worse. If risk aversion picks up USD will outperform CAD.
As I mentioned yesterday, Canadian oil is also trading at a massive discount to WTI, now at $31.
Technically, USD/CAD has rejected the 200-day moving average and there are reasons for optimism.
