In the US, there are indications (based on data released on Friday and Monday) that the jobs recovery is moving faster than anticipated. That has renewed conversation about “tapering” or reduced Fed stimulus and has led to a broadly stronger US dollar. At the same time, oil prices have stabilized this morning but only after falling to a three week low as a result of on ongoing concerns about the spread of the Delta variant and its potential impact on global growth. As a result of weaker oil prices and a broadly higher US dollar, the Canadian dollar is trading around its lows so far in August. At the moment, USD to CAD is at 1.257 (CAD to USD at 0.795). Tomorrow, we will get the inflation figure in the US and if the number is much higher than anticipated you can expect further strength in the US dollar.
