Is USD/CAD front-running a rebound in oil prices?
The pair is down 92 pips to 1.3522 today and at a two-week low.
That's despite a cratering of oil prices this week, though after a plunge to $63 in Asia today, oil has strongly rebounded. The market could be sensing a double bottom here in WTI. It's now up more than $1 today, though still down 10% on the week.
WTI daily
The US side of the equation is also important today as the market frets that the Federal Reserve will need to cut rates this year to stem a banking crisis. US 2-year yields are down 20 bps today and flirting with the bank crisis lows.
