Home Daily Commentaries Canadian dollar rebounds on oil and equities

Canadian dollar rebounds on oil and equities

Daily Currency Update

The Canadian dollar regained most of yesterday’s losses as oil and equity markets rebounded to end the week. Oil prices rallied from the steep drop seen yesterday. After touching $93 a barrel earlier in the week, prices dropped to under $89 a barrel yesterday. The benchmark West Texas Intermediate (WTI) oil price made a recovery and is now back up over $90 a barrel at the time of writing. This played into the strengths of the Loonie alongside other commodities, lending support to the Canadian currency.

Key Movers

The US dollar index (DXY) was up 0.13% heading into today’s North American session. The Greenback made gains against GBP and JPY after both the English and Japanese central banks held interest rates alone with no signals to revisit hikes. This was countered by commodity currencies like the Canadian and Aussie dollars which made gains on stronger oil and equities.

Overnight, the Bank of Japan (BoJ) held their interest rates steady during their policy meeting. As a result, the Yen is down and heading back towards the 150 Yen per dollar level last seen in October 2022.

Similarly, the Bank of England (BoE) also left interest rates unchanged. This caused the GBP/USD pair to slip even further with the pair falling 2.5% since the beginning of September.

Expected Ranges

  • EUR/CAD: 1.4293 - 1.4394 ▼
  • GBP/CAD: 1.6461 - 1.6592 ▼
  • AUD/CAD: 0.8634 - 0.8709 ▲
  • USD/CAD: 1.3426 - 1.3542 ▼