FX Action: USD-CAD has descended to a 12-day low
FX Action: USD-CAD has descended to a 12-day low at 1.3020 amid a sell-off in the U.S. Dollar and associated dip in U.S. Treasury yields after Trump complained about Fed rate hikes. This comes with Friday's release of hotter-than-expected CPI data out of Canada still in fresh memory. The breach of recent daily lows at 1.3050-52 mark a bearish development for the pairing. There still remains a built-in discount to the Canadian Dollar, relating to the NAFTA renegotiation, so USD-CAD will remain directionally sensitive to developments on this front. For now, directional bias looks to remain to the downside. The August-7 low at 1.2962 provides a downside waypoint.