USD/CAD touched a fresh low
Oil is lower, NAFTA negotiations are going nowhere, Toronto house prices are falling and Trump just slapped the first round of 20% tariffs on lumber but the Canadian doesn't care.
Trading is light today as Wall Street and Bay Street enjoy the final days of summer but USD/CAD will be a big mover in the final third of the year.
As I wrote yesterday, the pair is looking increasingly heavy in the short term. The way the Canadian dollar has been able to shrug off worries has been impressive. Of course, a huge part of that is the Bank of Canada hike and hawkish stance.
They're not going to give up on it quick though and there are no speeches on the schedule ahead of the September 6 BOC decision.
So for now, momentum and price action are the story and it's a good story for CAD.
