The Canadian dollar is at a new 11 year low against the US dollar. It had already surpassed the cycle highs of 2015, the post crisis highs of 2009 and it is now climbing higher to levels seen in 2004.
The high so far is 1.3384, in a move that saw a surge of around 40 pips from the middle of the previous range. Is 1.35 the next target?
The loonie slides with other commodity currencies: the Australian and New Zealand dollars. This is an extension of previous moves. The currencies that are now on the rise are safe haven ones. This includes the euro and the yen, on top of the dollar.
More: CAD: Don’t Fall Into The Gap – CIBC
For the Canadian dollar, the recent breakout began with the poor retail sales figure yesterday. Canada’s core sales remained flat. Today’s move has no specific trigger and it is wider than only the lonely loonie.
It’s a commodity currency crash. In today’s show, we did a deep dive into this phenomenon:
And here is the Dollar/CAD chart, showing the nice surge. Note that above 1.3333, the opposite pair, CAD/USD is below 0.75.
