USD/CAD lower but but headwinds remain for the Canadian currency

The USD/CAD is currently trading below the 1.43 handle. Yesterday the USD/CAD got an initial boost from the higher US CPI report and that helped to send it back up to around 1.4340. However, it later fell back to just below 1.4360, as the wider US dollar fell foul of what Trump had to say about Russia and Ukraine. The USD/CAD later rebounded and closed in the US at 1.4306. Earlier today it tried the downside again, as the EUR/USD pushed higher and that wider dollar (apart from versus the Yen) came under further pressure. So, the USD/CAD hit a session low at 1.4255. It has bounced now though and that comes as Oil prices leak even lower this morning. We need to remember here; that oil (and related products) account for 20% of all Canadian exports. Whilst there might be a stay of execution from Trump on oil tariffs, that is not guaranteed to last and the lower oil price, if extended is not a positive for the currency either. So, the USD/CAD is off its lowest levels of the session, but it could rebound some more, if that oil price keeps falling. We shall have to see as things develop. Meantime, we look for a potential break either side of 1.4250-1.4350. The USD/CAD is right now at 1.4291