Once again last week, USD/CAD failed to close through the key C$1.3145 level, despite the first test of levels above since the middle of May. For one, the market seems to be shaking off the surprising bout of Canadian economic data at the end of last week. Instead, there are two drivers in play right now: rising Fed rate expectations; and falling Crude Oil prices. With Fed funds futures contracts implying June 2017 as the most likely period for the Fed's first rate hike, there has been a material shift forward from pricing pre-NFPs. Inherently, this has translated into broad support for the US Dollar. Concurrently, ... (full story)