USD/CAD soars after the ISM data

The US dollar is catching a big bid to start the quarter as it breaks last week's high and is now threatening the post-FOMC high at 1.2487.

I expect that will be solid resistance for the time being but if oil comes unglued or risk assets take a real beating, it could break. The drop in yields today is suggesting a flight to safety but it's dollar negative once there is some calm.

Notably, AUD and NZD are roughly flat today while USD/CAD has shot 125 pips higher and 170 pips from the session lows just a few hours ago.

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