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USD/CAD Drifts With Oil Prices

CAD
  • CAD moving in lockstep with oil markets at typing, with USD/CAD fading to new lows on the day at 1.3469. Crude is trading back up to levels from earlier today after a dip down to a low of 83.77/bbl. Front month futures remain within the range seen so far this month with concern for weak global demand offsetting upside supply pressures.
  • USDCAD remains bearish - recent weakness resulted in a break of the 50-day EMA and 1.3562, 50% of the Feb 2 - Mar 10 rally. The move lower signals scope for an extension and note that 1.3491 was cleared on Apr 3, the 61.8% retracement.

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