CAD weakness resumes

The current risk-off sentiment has not worked well for commodity currencies and the CAD has been one of the underperformers as a result.

Source: Bloomberg

With oil prices sliding, the CAD has been sold off and some interesting price action is being seen in CAD crosses. USD/CAD has started regaining ground and is currently knocking on $1.2400 after having bottomed in the $1.2100 region.

The greenback is enjoying a safe haven bid relative to commodity currencies and perhaps the fact we are headed to non-farm payrolls is helping to underpin the currency. The $1.2400 region is also the 23.6% retracement of the May-to-June rally and if the pair manages to knock through that barrier, it could run to June highs at $1.2566.

On the US calendar today we have consumer confidence and Chicago PMI numbers. Any signs of strength could see the greenback extend its gains.

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