The Canadian dollar continues to search for direction and remains mostly range-bound between 1.317 and 1.320. While developments in Canada do obviously matter to the USD to CAD rate, at the moment all eyes are on the US dollar and developments in that country are likely to determine whether the global weakness of the USD will continue. For now, USD has stabilized against its major counterparts. One impetus for direction in the US dollar could come tomorrow from Fed Chairman Powell’s speech, where it is expected that he will wade into the inflation/deflation debate and partially clarify the Fed’s views on the matter. Today may be the calm before the storm as oil continues to trade at 6 month highs, gold is well below its record levels of earlier this month, and most stock indices are flat but at or newer record levels.
