Finance News

Story: Canadian Dollar Hits 1.3100 as Oil Glut and Fed Uncertainty Squeeze the Loonie

By James Thorp

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Fed Decision Hangs Over Currency Markets. Investors are watching the Federal Reserve's upcoming policy meeting like hawks.

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Oil Supply Surplus Keeps Pressure On. The supply glut in crude isn't a blip. It's been building, and it's weighing on prices in a way…

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The loonie slid. Monday brought the Canadian dollar down to 1.3100 against the U.S. dollar, caught between falling crude prices and a market holding its breath ahead of the…

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Oil did a lot of damage here. Crude prices dropped as traders reacted to a global supply surplus — too much oil, not enough demand-side confidence to soak it up.

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Investors are watching the Federal Reserve's upcoming policy meeting like hawks. The question isn't just what the Fed does — it's what any signal about future rate moves does to…

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Broader economic worries are feeding into this too. Global growth data hasn't been reassuring.

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Worth noting: the Bank of Canada hasn't said much lately. No fresh commentary, no guidance on how officials are reading the current situation.

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More context: Wisconsins Kalshi Fights Back Against Voting Rights Threat Tied to Election Trading

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The supply glut in crude isn't a blip. It's been building, and it's weighing on prices in a way that makes the Canadian dollar's near-term path look pretty rough.

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The U.S. dollar's own trajectory matters here just as much as oil. When American monetary policy tightens, capital flows toward USD-denominated assets.

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And domestic data could shift things too, though that's a secondary concern for now. Any surprise in Canadian economic numbers — employment, inflation, trade figures — could move…

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See also: Bitcoin Drops 2% as Trump Eyes Bigger Iran Strike and Brent Crude Holds Above $100

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The absence of Bank of Canada commentary leaves a real gap. Markets want to know whether Canadian officials see the current weakness as a problem worth addressing or just noise…

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For now, 1.3100 is where the loonie sits — and the two forces that pushed it there, a crude surplus and Fed-driven uncertainty, aren't going anywhere fast.

The Currency Analytics

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