USD trumps the CAD
Although oil prices are up sharply (above 7% on the day), the USDCAD is higher (CAD is lower). Typically, when the price of oil goes higher, so too does the CAD (the USDCAD goes lower).
Today against the greenback, the CAD is lower. The USD is king today as interest rates are sharply higher and that is helping the dollar across the board.
All is not so bearish in the CAD, however. If you look at the other major currencies, the CAD is higher with the largest gain against the JPY and the AUD (up 1.58% and 1.19% respectively). It is down by -0.15% against the USD and virtually flat against the GBP.
What might/should help the loonie against the dollar is the Technical resistance against the 100 and 200 hour moving averages. Both moving averages currently come in at the 1.3458 area. The last move higher stalled against those moving average levels (see blue and green lines in the hourly chart below). Is a ceiling in place? Will the sellers lean against the level and push the price lower? We will see but the risk defining level against the two MAs is in place.
