USD/CAD back above 1.30 for lowest level since Nov 2020

• USD/CAD is 0.8% higher as the US dollar firms into the close on Wall Street. 
• CAD is at the lowest level since Nov 2020 amid rising worries about the global economic outlook.

USD/CAD is ending on Wall Street in the green by some 0.8% following a final thrust to the upside in the US dollar. This has taken the Canadian dollar to its lowest level since November 2020 amid rising worries about the global economic outlook that has weighed particularly heavily on commodity-linked currencies.

The price of oil, one of Canada's major exports, settled 6.1% lower at $103.09bbls following yet further poor economic data out of the Middle Kingdom and considering that China's two largest cities tightened COVID-19 curbs. 

Meanwhile, the Bank of Canada Deputy Governor Toni Gravelle is due to speak on Thursday and there will be ears to the ground for Federal Reserve speakers as well. On Monday, Minneapolis Fed President Neel Kashkari said the US central bank may not get as much aid from easing supply chains as it is hoping for in helping to cool inflation. 

Atlanta Fed President Raphael Bostic said he doesn't see the case for 75bps hikes yet. He already sees signs of peaking supply pressures and that should give the Fed room to hike at half-percentage-point interest rate increments for the next two to three policy meetings.

As for the Bank of Canada, money markets expect the central bank to raise its benchmark rate by half a percentage point for a second straight policy meeting on June 1. Meanwhile, Canadian government bond yields have pulled back from fresh multi-year highs, tracking the move in US Treasuries. The 10-year  touched its highest since May 2011 at 3.173% before sliding to 3.028%, down 9.7 basis points on the day.