Rough day for the loonie
The reversal in oil prices and worry about tomorrow’s Bank of Canada decision are weighing on the loonie.
USD/CAD hit a one-month low of 1.2471 and retested it with a dip to 1.2478 today but has since reversed and hit 1.2575 — a one-week high.
The main driver is worry about the virus and reopening. That’s sent global stocks lower today and has crude down 2.5%.
There isn’t much standing in the way of a continued drift higher in USD/CAD but a series of old highs kick in from 1.2600 to 1.2647. That should cap any move today and will be tough to break on tomorrow’s BOC.