February 2, 2023

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USD/CAD gets a boost as oil falls 3%. Watch out for Macklem comments

1 min read

Session low for oil

WTI crude has come under fresh selling pressure, dropping $2.12 to $39.96, which is a two-day low. Oil has been stuck in a a $63.68 to $66.76 range since May 3 and those are the key parameters to watch.

USD/CAD has made a big move lower since late April on broad commodity market strength and the BOC’s hawkish shift. BOC governor Tiff Macklem speaks at 1500 GMT. The topic is the benefits of an inclusive economy so it might skip key points on monetary policy.

In any case, USD/CAD is a bit overextended at this point after a one-way 500 pip move. A retracement to 1.2250 would be a healthy correction.

Session low for oil
I have been calling for 1.20 in this pair for weeks.

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