USD/CAD down a half cent on the day
Today's USD/CAD decline is more about the US dollar side of the equation after the loonie was responsible for most of the move earlier in the week.
The drop today is the third straight day of declines and sixth in the past eight days. It's part of a 300 pips decline with the BOC as suddenly the only central bank hiking rates.
I've been writing for the past two days that the pair looks increasingly heavy and nothing's changed. If anything, Yellen's no-show takes away one of the risks of a stronger US dollar..
The real intrigue begins when USD/CAD gets close to 1.2414, which is the cycle low. It's not looking great for the bulls. That support level is critical because it's buffered by the 2016 low and if it gives way, there isn't much support until 1.20.
Update:
Not long after I published this, the Bank of Canada tweeted that Deputy Caroline Wilkins was at Jackson Hole so there are some Canadian dollar risks in play if she speaks to reporters on the weekend (she's not on the official agenda).
Wilkins was the person who tipped a rate hike to begin with so she isn't shy about addressing monetary policy. There have been no signs that the BOC is uncomfortable with the rise in CAD but it's safe to say that no central bank likes a higher currency in 2017.
