The Loonie had a strong rally overnight immediately after the fx market opened at 5 pm ET on Sunday, following the cease-fire in the trade spat between the US and China. A 90-day truce might provide some clarity that businesses need globally.
The Loonie was also boosted by crude prices (West Texas), which also climbed sharply, over 6 percent this morning, to an intraday high of $ 53.83 a barrel after Russia and Saudi Arabia agreed to extend efforts by the Organization of the Petroleum Exporting Countries to curb production, and Canada’s oil-rich province of Alberta also ordered a limit on output. Qatar will leave OPEC as the cartel is pressured to cut production.
The Bank of Canada is meeting this Wednesday to discuss their interest rate levels. So far, the forecast is to keep the rate the same at 1.75 percent and hike it in early 2019. Canada will also release Manufacturing PMI. On Tuesday, Canada publishes Labor Productivity, which is forecast to dip to 0.4 percent.