The risk picture has deteriorated since Europe went home and oil is also lower today so there’s good reason to sell the loonie but month-end flows might be pushing it further than justified.
The pair just crossed above 1.3800 from a low of 1.3677 just a few hours ago. Earlier this week, I posted about Credit Agricole warning about month-end flows into USD/CAD.
A close anywhere above 1.3723 will be the highest since May 2020 while above 1.3833 would mark a new intraday high. This is the third big weekly gain in a row and this pair is rallying almost as quickly as it did at the outset of the pandemic.
