Relentless bid in USD/CAD continues as oil slips from the highs
Bank of Canada Governor Stephen Poloz speaks today in Washington State. His comments will hit the wires at 7 pm ET (2300 GMT) and the market is acting as if he will signal lower interest rates, or at least a more-dovish stance.
The change in market tone comes after weak retail sales and CPI numbers on Friday.
What's particularly impressive about the gains in USD/CAD is that they come despite a 3% rally in oil prices. That's something that would normally weigh heavily on USD/CAD.
The pair is now pushing up against the combination of the 200-day moving average at 1.3244 and the July high of 1.3253. Together that's a powerful resistance line but it's also the only big barrier above. A break could easily stretch to 1.35 and beyond.
