USD/CAD not getting any help from oil today
The Canadian dollar was beaten up Friday after a much worse-than-expected Q4 GDP report and the momentum has continued into the new week. The loonie is the weakest performer aside from the euro.
The US dollar continues to make headway against CAD and is up 26 pips to 1.3316. That's right at the 55-day moving average after ticking above it earlier.
The gains in USD/CAD come despite a 90-cent rally in WTI crude to $56.68. One of the reasons the loonie isn't benefiting from higher oil is that Enbridge announced its Line 3 pipeline replacement project will be pushed back by around a year. The pipeline along with KeystoneXL and TransMountain are the major hopes to alleviate the bottleneck that's trapping Canadian oil. Line 3 was thought to be the closest to the finish line.
Technically, the next line of resistance is 1.3340, which was the February high, followed by 1.3375.
