USD/CAD brushes off oil weakness and tests Monday's low
The US dollar is broadly weaker with the commodity currencies in particular taking advantage. That's pushed USD/CAD down by 46 pips to 1.2694 today.
That's nearly 100 pips below the session high of 1.2783 and it's challenging the Asian opening low of 1.2687. If that gives out it could be a quick trip back down to last week's lows near 1.2600.
The loonie isn't getting any help from the commodity market today as oil prices fall 22-cents to $52.55. The broad risk backdrop is neutral with bonds and equities not doing much aside from a few meme stocks.
The main risk to this pair this week are on the USD side with the FOMC decision coming up tomorrow and a full slate of US earnings to round out the week. On Friday we get Canadian November GDP but it's tough to envision that one as a market mover.