WTI crude down 3.4%
China is in focus and not for positive reasons. That's helped to put pressure commodities and the Canadian dollar.
The loonie has been the worst G10 performer this year and it's staggering into year end after a dead cat bounce last week.
The modest bounces in oil and CAD would normally be worrisome signs but you never want to read too much into year-end moves. Technically, the trade is to go with a break of 1.38 or 1.40.
If there is a trade, I like the long side. The support at 1.38 is an opportunity to manage risk and position for another year of USD/CAD strength.
