Crude oil prices fell below $55 today, causing a weakening of the Canadian Dollar. In yesterday’s piece, the USDCAD resistance level of 1.30937 was identified as a possible area to initiate shorts. The rally seems complete as USDCAD has now turned and is heading south as the Treasury Department has reiterated its rate stance in the G7 meetings in France.
A Reuters report has cited a spokeswoman of the US Treasury Department as saying that there have been no changes to the Treasury’s overall dollar policy. As long as the expectation for rate cuts by the Fed is in place, the logical play would be to look to short the USDCAD on rallies to possible resistance points, especially as this week has relatively few news releases for both currencies.Don’t miss a beat! Follow us on Twitter.