Less dovish BOC and higher oil prices one dam, another looms.
Quick drop down to 1.2370 on a 30-pip gap on the break of 1.2400.
The pair is getting ever-closer to 1.2352. I suspect real money CAD buyers are going to come out of the woodwork in the next day or two and longer-term longs are going to cover.
USDCAD daily
I have been touting shorts in USD/CAD today.
The Bank of Canada said a few things to seriously diminish the chance of a rate cut this year and the rally in oil is adding to the case for shorts.