Morning Commentary & Currency Insights – October 18, 2018

The Canadian dollar continued to weaken in concert with most G7 currencies as near term rate dynamics driven by a hawkish Fed remain supportive for the USD.  ‎While the correlation between the CAD and oil remains far from the extremes seen in early 2016, the recent modest uptick in WTI is also being touted as a reason for CAD weakness.  Ahead of Canadian retail sales and CPI data tomorrow, USD/CAD will likely trade close to a range bound by the 50d MA at 1.3015 and the 100d MA at 1.3065 or thereabouts.