USD/CAD hits a high of 1.3198 for the first time since 10 September
It’s getting ugly for oil as WTI breaks below $60 and extends its fall sharply. At the same time, Brent is below $70 and dropping as well. WTI is down by almost 2% on the day now falling to $59.50.
In turn, this is weighing on the loonie and USD/CAD has jumped to a two-month high as a result. Price is now closing in on the 1.3200 handle but buyers will be aiming towards the September high @ 1.3226. Break above that and it opens up a move towards the July high @ 1.3290.
For good measure, the dollar remains underpinned following the Fed statement overnight. This is setting up for a good platform for price to run higher in USD/CAD still in the session ahead.