USD/CAD up 115 pips today
The Canadian dollar is under broad pressure as oil prices slide. WTI crude is down 93-cents to $45.38. The decline came after the International Energy Agency warned that oil surplus will persist into 2017, partly due to declining demand in China and India.
However crude is still in the top-half of its recent range.
Not so for the Canadian dollar as it trades at the worst level since Aug 8.
In USD/CAD terms, it's the fifth consecutive day of gains for the pair and it's now threatening the August and July highs. The dovish comments from the Fed haven't resulted in USD declines.
Technically, there's a bit of a range trade ongoing. We've been locked in the 1.27-1.32 range since May. It's going to take some kind of surprise from the BOC, the Fed or the oil market to get it moving again.
