USD/CAD is slowly giving back Wednesday's gains
The Bank of Canada didn't say they were going to hike in May, but they didn't exactly say they weren't going to hike either. They delivered a series of mixed messages about more confidence in inflation but uncertainty about excess capacity.
USD/CAD rose more than 100 pips yesterday but it's now given up half that gain. The pair is at a session low today and just touched off 1.2600.
A big part of the latest leg of Canadian dollar strength is commodities. Oil is sizzling, adding another 60-cents today and hitting $69.10. On Tuesday, it was as low as $65.56.
But it's not just oil, most commodities are hot at the moment with both nickel and aluminum up ore than 5% today alone.
