Turn in oil and the US dollar weighs
USD/CAD is down another 48 pips after a soft US services PMI and a strong Canadian Ivey manufacturing PMI. It's the third day of sharp losses for the pair after three months of gains starting on October 1.
Today's drop brings the pair down to 1.3325, which is 3 pips below the 38.2% Fibonacci retracement of the Oct-Dec rally. The next level to watch is the 55-day moving average at 1.3309.
The other level to watch is $50 in WTI. Crude is up $1.32 today to $49.30 as it continues to rebound. Canadian oil is at just an $11.75 discount, which is also much tighter than a few months ago -- when Canadian oil hit a low of $16.
Update: That didn't take long. USD/CAD down to 1.3306.