USD/CAD is higher for the fourth straight day and above 1.30 for the first time since July 17. The catalyst is a sudden slump in oil prices. Crude had been higher at the start of US trading but quickly fell and it's not entirely clear why. Eyes are on the Iran nuclear deal but -- if anything -- the odds of a deal are slightly lower today after Iran accused the US of 'procrastinating' on a deal.
Canadian data today included the new housing price index. It was up 0.1% after a 0.2% rise in June but that data point is rarely a market mover.
Instead, the market is focused on the overall deterioration in risk sentiment. The S&P 500 is down 52 points in the second day of sharp selling. China cut rates today but the market is worried that actions aren't strong enough to prevent an economic slump. In Europe, a 12% rise in natural gas prices is furthering the crisis.
For USD/CAD, the pair has broken the August high and isn't facing much resistance now until the July high of 1.3224.
