Good Morning.
#USD/CAD it wasn't that long ago we saw 1.3600 being tested. However, a week or so later back testing 1.3800. It's likely no coincidence the CAD strength ended after the Stelco Steel takeover was completed by Cleveland Cliffs. That was $3.4 billion and explained what I kept alluding to as surprising CAD strength. The market was already way speculative long USD so there was little appetite to stand in the way of a heavy offer. However, now that is done and we have a Bank of Canada meeting on Wednesday, where the BOC is expected to cut by 25 bps. Only question is whether 1.3800 breaks before that. Any follow through really depends on the language the BOC uses.
Not sure the Biden news yesterday is at work here. Maybe.
