USD/CAD has extended to a fresh high, hitting stops in a rise to 1.3314.
The rise put it fractionally above the Sept 17 high of 1.3310.
The 1.3383 high is more notable but this could set the stage for a breakout.
The Canadian dollar is in a tricky spot because domestic economic data has been surprisingly strong this year and the BOC is firmly neutral (but has a reputation for changing its mind quickly).
Of course, Canada isn’t an island and is highly subject to global growth so it’s vulnerable. That’s what the latest move is showing.
But everyone is vulnerable and Canada is an island of stability in other ways, particularly in politics. There’s an election in three weeks and it’s either the centre-left of centre-right that’s going to win, probably in a minority. That kind of political stability is a rare commodity in the world today and merits some kind of premium. The governing Liberals, who are favored to hang on, are also talking about more fiscal spending and the country has plenty of room on that front.