USD/CAD stalls ahead of 1.3850 and here is why

Yesterday the USD/CAD advanced towards 1.3850, as noted here at the time and it looked set to potentially take on the high seen last year. That is when the USD/CAD topped out at 1.3899 back on November 1. However, the US dollar stalled at 1.3849 yesterday and later closed at 1.3825. The reasons for that would appear to be twofold. First, the rebound in oil prices yesterday afternoon helped the CAD to steady and second the fall back in the Yen forced flow back into the CAD/JPY and the rebound in that cross rate led to CAD demand versus the dollar at the same time. Nothing much has yet changed in terms of those dynamics and that has pushed the USD/CAD back to a low so far today, at 1.3810. It is trading just now at 1.3814