FX Action: USD-CAD ebbed to a three-day low
FX Action: USD-CAD ebbed to a three-day low at 1.2125, tracking the broadly softer trading bias of the U.S. buck today. The week's low is at 1.2082, and the pairing would need to close out today below 1.2160 to chalk this week up as the fifth consecutive down week. The pairing has declined by some 12% since May, reflective of the Canadian economy's having pulled out of the low-oil-price-era doldrums and consequential commencement of a BoC tightening cycle. Presently, momentum indicators are flashing oversold, with the 14-day relative strength index at a 26.5 reading (sub-30.0 readings are when the trend has stretched itself relative to historical norms), so caution is advised to trend followers. The Canadian calendar today has existing home sales and Q2 national balance sheet accounts, neither of which are likely to move the Canadian dollar. USD-CAD has support at 1.2080-82.