Home Daily Commentaries CAD gains alongside rising oil prices

CAD gains alongside rising oil prices

Daily Currency Update

The CAD strengthened today against many of its major counterparts as oil climbed past $81 a barrel. Oil was up by around 0.71% this morning, bolstering the Loonie. The Canadian dollar continued to climb against the JPY, trading near the high 116 level and hitting an 8-week high this morning. Markets are looking ahead to Bank of Canada (BoC) Governor, Tiff Macklem’s speech today at 1:30 pm EST regarding jobs, growth, and inflation.

Key Movers

The US dollar dipped slightly today against the JPY. This came after a nearly 8-week high with the market on alert for intervention to support the JPY, which nearly hit the 160 mark against the USD. The US Dollar Index (DXY) eased this morning as well falling to the 105.506 level. Federal Reserve member Mary Daly is scheduled to speak later today regarding the economy and monetary policy. This will take place at a partnered event with the Commonwealth Club World Affairs in California at 2:00 pm EST. Markets are eyeing this meeting for future clues of the direction of the Fed’s monetary policy.

In Eurozone news, the German IFO Business Climate Index, which is a composite index based on surveyed manufacturers, builders, wholesalers, services, and retailers in the Eurozone area, came in below expectations. The index showed an 88.6 level, below the expected 89.4 forecasts and the previous 89.3 reading. This unexpected fall indicated more pessimistic expectations out of Europe’s largest economy. Similarly, the National Bank of Belgium’s (NBB) Business Climate results came in below expectations at -11.1 against the forecasted -10.2, and previous -11.

In the UK, the GBP strengthened against the USD as markets looked beyond the UK’s general election to focus on their monetary policy outlook. Meanwhile, UK Industrial Order Expectation numbers came in at -18 versus the forecasted -26 and previous -33 readings. This shows manufacturers reported output volumes that were largely unchanged in the past 3 months.

Expected Ranges

  • EUR/CAD: 1.46275 - 1.46957 ▲
  • GBP/CAD: 1.72990 - 1.73485 ▲
  • AUD/CAD: 0.90826 - 0.91096 ▲
  • USD/CAD: 1.36575 - 1.37081 ▼

Written by

Melanie Scott


Fascinated by the mechanisms that shape financial markets and their impact on currencies, Melanie is passionate about understanding how different factors shape market movements, and deciphering what these fluctuations signify for different currencies. As a Corporate Client Associate at OFX, she works closely with businesses across North America, offering them insights into foreign exchange strategies aimed at mitigating currency risks.