The Loonie is having another rally with the USD/CAD falling to an almost one-month low; it is trading at 1.3341 at the time of this writing. The main reason (you guessed it): oil prices. Oil prices jumped during overnight trading, building on five straight sessions of gains that have seen crude's prices rise by more than 9%. The price of crude is following the positive sentiment from last week, when oil closed up Friday on the back of a strong U.S. jobs report and hopes for a resolution to the U.S.-China trade dispute.
At this point, the USD/CAD has a significant technical support in the mid 1.3300s after the quick fall from January 2nd. Additionally, West Texas Intermediate crude is a few cents away from the critical psychological level of 50 dollars.
Over the next few days, if OPEC and the allied non-OPEC countries keep their agreements, the oil market is likely to be rebalanced during at least the first half year.