Home Daily Commentaries CAD rebounds as oil climbs

CAD rebounds as oil climbs

Daily Currency Update

The Canadian dollar rebounded against the US dollar on Tuesday after oil prices climbed. USDCAD was down 0.36% sitting at 1.26990 at the time of writing. The safe-haven US dollar started the new year with good momentum, putting pressure on its major counterparts as investors assessed the economic impact of rising COVID-19 cases due to the Omicron variant. The dollar was also boosted by a rise in US treasury yields, which are sensitive to rate hike expectations, signaling that the market is bracing for higher rates from the US Federal Reserve.

Key Movers

The pound and the euro rebounded on Tuesday after starting the new year on the back foot against a resurgent US dollar. GBPUSD was up 0.48% at around 1.3543, while the euro was down 0.04% sitting around 1.2923. Demand for the Australian and New Zealand dollars also climbed back up this morning after a strong US dollar forced the commodity currencies lower at the start of the week. AUDUSD was up 0.67% at 0.72392, while NZDUSD was up 0.28% at 0.68053.

Expected Ranges

  • EUR/CAD: 1.4336 - 1.4419 ▼
  • GBP/CAD: 1.7139 - 1.722 ▲
  • AUD/CAD: 0.9162 - 0.9194 ▲
  • USD/CAD: 1.2669 - 1.2763 ▼