The Queen's funeral is a holiday in most of Canada today but markets are open and I assume that desks are staffed so liquidity in USD/CAD should be fine.
The pair is under pressure today as oil and gas prices decline. WTI crude is down 3% and natural gas down 2.5%. Combine that with poor risk sentiment and USD/CAD is at the highs of the day, up 75 pips to 1.3336. That's the highest since November 2020.
I spoke with the CBC on Friday about the loonie and continue to see it rising to 1.37 (73-cents in CAD/USD terms).There is some resistance at 1.3400-1.3433 but right now the momentum is higher.
If there is a turn in the loonie it will come with a broad reversal in markets. Until we get a nod from the Fed that it's at least slowing down the pace of hikes and seeing some relief on inflation, it will be tough to turn around.
Happy to chat with @FX_Button today about why the loonie is getting weaker against the U.S. dollar, and what it means for Canadians and our overall economy
— Philippe de Montigny (@philippedemo) September 16, 2022
For more on this, read this excellent piece from my colleague @p_evans: https://t.co/NHhoZj0Nkr#dollar #cdnecon #forex pic.twitter.com/rBrOHEAyHi
