Canadian dollar can’t get any respect
Oil and election worries have erased the drop in USD/CAD from last week’s shining Canadian jobs report.
The loonie has been on the defensive this week as crude prices slip on John Bolton’s departure and on worries surrounding the October election. The market is simply struggling to believe in the Canadian economy despite the better global growth picture lately.
Technically, the two next levels to watch on my chart are the 50% retracement of the Sept drop at 1.3259 and the 100-day moving average at 1.3278. I don’t expect either to put up a stiff fight but those at the 61.8% retracement at 1.3288 are levels to use to manage risk.