USD/CAD completely reverses gain and falls below Friday’s low

The Canadian greenback is in an fascinating spot in the intervening time.

It stands to profit from rising commodity costs as Canada produces all the identical commodities as Russia.

The flipside is that inflationary stress may imply decrease charges, that would harm international development and pop the Canadian housing bubble.

It is a delicate steadiness the place the loonie may very well be a rockstar if commodities proceed to rise at a average tempo however not sufficient to pressure central banks to hike charges to punitive ranges. That is threading the needle however it’s not totally unrealistic. World markets are additionally displaying some spectacular resilience and that is CAD-positive as nicely.

The each day USD/CAD chart rejected the upside and is now approaching that help zone at 1.2650/1.2634.

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