CAD Rises as Oil Rises After Lower US Inventories

he risk-sensitive Canadiandollar was little changed against its U.S. counterpart onThursday as oil prices rose and equity markets dipped.

The loonie’s steady performance follows a retreat from anearly three-week high on Wednesday after a more dovish thanexpected statement from the Bank of Canada. Bank of Canada Deputy Governor Timothy Lane will give apresentation on the topic “Committed to a better Canada: theBank of Canada’s role in challenging economic times.”

The deputy governor’s appearance may be more closelymonitored by investors after the central bank revealed a moredovish stance. The central bank will release his preparedremarks at 12:10 p.m. EDT.

Losses for European and U.S. stocks cameafter the European Central Bank kept its already loose policystance unchanged. Oil prices rose after U.S. industry data showed a largedrawdown in crude stocks, reflecting the impact of an Atlanticstorm. U.S. crude prices were up 2.07 percent to $46.44 abarrel. Oil is one of Canada’s major exports.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza