USD/CAD held just under 1.3900 Monday, down 0.2% on the day, as WTI crude's climb to a post-Aug-24 high offset a U.S. dollar that Fed Chair Kevin Warsh's hawkish turn should otherwise be pushing higher. The pair normally moves opposite crude, since stronger oil improves Canada's terms of trade, but USD/CAD has instead drifted with WTI since August 26, a sign the Fed side of the equation now rivals oil's usual pull on the currency. Wednesday's Bank of Canada decision is the next test of which side wins.
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