CAD Higher on Oil Surge

The Canadian dollar strengthened against its U.S. counterpart on Tuesday as oil rose and the greenback lost ground against a basket of major currencies.

At 9:16 a.m. ET (1316 GMT), the Canadian dollar CAD=D4 was trading at C$1.2496 to the greenback, or 80.03 U.S. cents, up 0.4 percent.

The currency’s weakest level of the session was C$1.2555, while it touched its strongest since Thursday at C$1.2495.

Canada’s bond and stock markets were closed on Monday due to the Thanksgiving Day holiday.

usdcad Canadian dollar graph, October 10, 2017

Prices of oil, one of Canada’s major exports, were supported by Saudi Arabian export cuts for November and comments from OPEC and trading companies that the market is rebalancing after years of oversupply. U.S. crude CLc1 prices were up 1.73 percent at $50.44 a barrel.

The U.S. dollar .DXY broadly fell after stronger-than-expected German trade data boosted the euro.

Bank of Canada Senior Deputy Governor Carolyn Wilkins will participate in a panel discussion at 2 p.m. ET (1800 GMT) for the International Monetary Fund Annual Meetings Seminar series. The topic is “Systemic Risk and Macroprudential Stress Testing.”

via Reuters

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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, Alfonso Esparza 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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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