Canadian dollar sliding with oil.
The US dollar is bouncing right across the board but nowhere with as much spring as in USD/CAD, which is up to 1.2044 from as low was 1.1942.
Two factors are helping.
- Oil prices are trading close to $61.00 after rising as high as $62.50 on the inventory data. The inability to hold gains on bullish news could mean a break in the oil rally.
- Alberta elected a party that will raise corporate taxes and could hike oil royalties.
Technically it's an important close today. The 1.20 level has held on a closing basis after three breaks. If it breaks, a target is the 200-day moving average at 1.1741.
