No reasons to buy the loonie today
USD/CAD is up 28 pips to 1.2541 on souring sentiment throughout markets. There are a handful of reasons for the push higher in the pair:
- WTI crude oil is down 77-cents to $67.67 to start the week
- Delta cases continue to rise, including in Japan where covid cases hit a record
- Chinese data on retail sales and industrial production was well short of estimates
- The run in equities is stretched with the Stoxx 600 riding a 10-day winning streak
The short term level to watch in USD/CAD is last Wednesday's high at 1.2548. A rise above could quickly run another 40 pips.
