USD / CAD rose another 0.7% during the day, to 1.2921
Commodity currencies continue to be under pressure this week and there is now little time to look at the charts anywhere.
As the dollar remains more resilient for the week, the USD / CAD has reached its highest level since February yesterday and is now trading at its highest level this year, as we see the pair start to rise significantly.
I see 1.3000 marks in this hit before the loonie is credibly postponed, with a 38.2 withdrawal level of 1.3023 helping to provide some resistance before traders reassess the next few moves.
I gave some thoughts on the currency earlier:
All of this has been said that the basic picture is one that is difficult to understand.
Canada is at the forefront of vaccination competition and the economy continues to recover due to the rise of recent viruses, as the delta variant is not actually rising in the country as it is in the rest of the world.
In addition, despite concerns about a stronger dollar in the oil market and the outlook for demand, it is difficult to predict a complete collapse, as this time the virus restrictions will certainly not be as bad as last year.
Not to mention that as vaccinations increase, economies and demand conditions rightly follow this assumption.
It must also not be forgotten that BOC does not deviate from the normalization / tightening policy, so there are also strong divergences on this front.
However, the current focus of the market is that commodity currencies are out of taste until something else comes into focus. And as a trader, there is no point in arguing with schedules because it ultimately defines the trade and the risks involved.