Canadian dollar beaten up
USD/CAD rose above last week’s high of 1.3263 and touched a fresh high since July at 1.3265.It’s a technical break that could lead to a fresh challenge of the July high of 1.3290.
There’s been plenty of talk about the Federal Reserve backing down on rate hikes but the Bank of Canada might be a better canary-in-the-coal-mine. Plunging oil prices are negative for inflation and for investment in Canada. The BOC has also given itself far more latitude to hit the pause button than the Fed.