The Canadian dollar is on the back foot once again. After USD/CAD nearly reached 1.30, the pair is moving higher, above 1.31.
Crude oil inventories rose by 2.6 million, defying the numbers reported by API and weighing on the price of the black gold, Canada’s all-important export. Prices have been hanging around the bottom.
Global weakness, as seen as coming from China as well as from other places, is also hurting oil prices. A rate cut from the Bank of Canada remains on the cards, despite the recent calm messages.
In addition, the US dollar looks strong once again. While the monthly inflation numbers missed expectations rising by only 0.1%, the annual core CPI remained at 1.8%, keeping the Fed hike debate alive and kicking. We will hear from the Fed later on today.
In Canada, we have wholesales sales tomorrow and more importantly, a double feature of retail sales and CPI on Friday, to ensure a strong end to the week.
More: Morgan Stanley Chart Of The Week: Buying USD/CAD
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