The dual uncertainty around the potential conflict between Russia and Ukraine and how to best tackle the inflation conundrum continue to hang over financial markets, leaving investors stuck somewhere between the fight (risk on) and flight (risk off) response. The impact of this has been very little activity and movement in the FX markets this week. Evidently, even a 31-year high for the Canadian consumer prices index, and oil prices peaking to $95 mid-week, was not enough to jolt CAD to USD rates out of its current price range. Another reason for the lack of movement in the USD to CAD paring is that USD was the worst performing safe-haven currency this week as compared to the JPY or CHF (investors usually flock to USD, JPY and CHF in times of uncertainty). Currently, USD to CAD conversion is at 1.271, adding about a third of a US cent, holding relatively steady for the week, and just over a half a cent lower than the Consensus Canadian Dollar Forecast.
