The Canadian dollar was consolidating but waiting to take advantage of another fall of the US dollar. It still has the backwind of the BOC’s hawkish hike last week.

The hammer came from special counsel Robert Mueller. The probe into Trump’s connections with Russia will expand into his personal business dealing with family and associates involved.

If the President is in deeper trouble, the prospects of passing tax reform and infrastructure spending falls sharply. Health care reform is mostly dead. Don Junior is also in trouble.

The news sent the dollar down and the loonie was there to reap the benefits. USD/CAD is trading at the lowest since May 2016, at 1.2550. The low so far was 1.2540.

The Canadian dollar also enjoys the rise in oil prices. The black gold has reached $47.50 on WTI Crude Oil. Brent topped $50.

Here is how the move looks on the monthly chart. The really big level on the downside is that May 2016 low of 1.2460. Below that point, it would be the lowest since 2015. There is still some way to go.