A fresh and small wave of USD selling sends USD/CAD to a low of 1.2414. This comes on the background of sliding oil prices today, but they are still higher than beforehand after shooting up yesterday.
Later on today we will get the US Crude Oil Inventories, which are expected to show that storage is up by another 3.3 million barrels after a rise of 4.8 million last week. In addition, Saudi production is actually on the rise, so it hard to understand why oil is higher.
At the time of writing, WTIÂ Crude trades above $52. Also Brent is OK, at above $58, which is close to the top of the range.
USD/CAD is above support at 1.2415. Further support awaits at 1.2340. We can see how the pair is at the bottom levels of the wide range that accompanies it since late January, when the BOC surprised with a rate cut out of the blue.
More about the loonie:Â USD/CAD: Well-Defined Range, 2 Drivers
The big event of today is the release of the FOMC meeting minutes, from the meeting where the Fed removed “patienceâ€.
Here is the move on the chart:
