The Canadian dollar is in an interesting spot at the moment.
It stands to benefit from rising commodity prices as Canada produces all the same commodities as Russia.
The flipside is that inflationary pressure could mean lower rates, that could damage global growth and pop the Canadian housing bubble.
It's a delicate balance where the loonie could be a rockstar if commodities continue to rise at a moderate pace but not enough to force central banks to hike rates to punitive levels. That's threading the needle but it's not entirely unrealistic. Global markets are also showing some impressive resilience and that's CAD-positive as well.
The daily USD/CAD chart rejected the upside and is now approaching that support zone at 1.2650/1.2634.
