Commodity currencies are signaling a turn in sentiment and it's spilling over into equities.
One of the classic hedges from inflation is in commodites and that's bearing fruit with oil now $1 higher on the day. The commodity currencies have staged a quick turnaround with USD/CAD down to 1.2690.
It's a similar story in AUD/USD which has recouped most of its losses.
I tend to believe there will be a global convergence around inflation. So it will be difficult for it to run significantly higher in the US above Canada, for instance. That said, there are asymmetric risks around Canadian housing in a high-rate environment that will need to be dealt with at some point.