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The USD came down last week after the inflation in the US came down to 3% as reported last week. At the same time, we have seen some nice jumps in stocks, especially on the US indexes, but even the weak DAX was able to make a nice comeback. It appears that risk-on is in play and that stocks can resume even higher this week. Also, the USD index is consolidating here above 100 so at least in the next few sessions we will be looking for further dollar weakness. However, there is some weakness going on in crude oil so it appears that CAD and NOK can be headed lower in the near-term, for temporary pullbacks. I think that when DXY after will stabilizes for a higher degree correction, the USDCAD can see much more upside.

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