♻️FX Correlations: USD/CAD Steady Despite Crude Decline

• We have seen USD/CAD test 1.2930s to the upside for some time, the level is rejected. On Tuesday, we spot got close to the area, CAD strength vs the dollar kicked back in after Canada July inflation figures, and we finished the session below 1.2985

• USD/CAD and Crude oil Long-term correlation - short-term correlation is now negative, this means the relationship has broken in the short-term. Crude oil has been offered over the month, however, CAD weakness is yet to kick in. Now that CPI is out of the way, we could see CAD + high-beta FX offered too