The FX market does not like sitting for long periods of time on positions in momentum-less markets. One of the favourite market trades in recent months has been to sell the CAD (especially against the rampaging GBP) but the longer we spend in the doldrums, the more likely we are to see these positions starting to exit the market.

I believe that is what we are currently seeing and I expect more to come.

USD/CAD has been consolidating near technical support levels at 1.0725 and I suspect that any rallies from here will meet with plenty of grateful sellers.