USD/CAD update

The CAD has experienced some volatility, driven by some choppy price action in oil prices.

CAD
Source: Bloomberg

A brief rally in oil over the past week saw the CAD find its footing again and, combined with the disappointing non-farm payrolls reading, the trade unfortunately moved adversely. Stops were triggered at $1.2460 and the position has now been exited.

Having said that, oil seems to have resumed its weakness again as inventories continue to build up. Given the high correlation between oil and the CAD, renewed weakness is likely and this could see USD/CAD head higher again.

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