USD/CAD sway by oil and fire
The massive fires in Alberta have turned North and are threatening oilsands producers. While that's helping to prop up oil prices, the Canadian dollar is unable to take advantage because at least 1 million barrels per day of production has been halted.
USD/CAD is up 10 pips on the day at 1.2905 after falling as low as 1.2838.
The main Fort McMurray fire is now 355,000 hectares.
On the weekend it looked as if production was heading towards a restart but shifting winds pushed the fire to the North of Fort McMurray. Alberta Premier Rachel Notley said winds are forecast to push the flames towards the massive Suncor and Syncrude projects.
It's unlikely that oil production suffers any permanent damage but every day output is halted costs millions in exports. In addition, some vulnerable companies in the region will be pushed towards insolvency.
