Covid-worries provide a dip to be bought
We've seen time and time again how negative news related to covid is just an opportunity for dip buyers to step in. US equities are now positive with the S&P 500 up 2 points to 3568 after falling as low as 3543 a short time ago.
All the commodity currencies are doing better now but USD/CAD is at a session low at 1.3077 from as high as 1.3123. That's all without much help from oil, which is taking a break today.
CAD traders will notice that the correlations with crude are rising as the market gets more positive about the potential for a resurgence in Canadian crude.
In the bigger picture, USD/CAD is still in the range but I think it's only a matter of time until this chart breaks down and starts to give BOC Governor Macklem a big headache.
