Fits and starts
USD / CAD earlier today seemed to have finally taken a definite break from the late August rally, but hours later it is 75 pips off lows and unchanged that day.
The loonie has been a tough trade during the pandemic and continues to be so.
For those looking for inflation exiting the pandemic, there is a lot to like in Canada given the abundant resources. Relative rates are also a favorable factor and stability of the economy.
In the near term, today’s rebound is a bit of a headache, but I think the USD / CAD is finally coming to 1.30. But something about 1.29 in this environment doesn’t look quite right.