Finance News
By Sydney TheCMO
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U.S. Dollar Slips, Giving Canada Extra Room. It wasn't just oil doing the work. The U.S. dollar was also sliding against a basket of major…
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Caution Underneath the Gains. Not everyone's piling in. Some traders are staying cautious, and probably for good reason.
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The Canadian dollar gained ground against the U.S. dollar Thursday. Crude oil, Canada's most important export, surged more than 2% to $78.
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Canada sits among the world's biggest oil producers, so the link between crude prices and the currency isn't subtle — it's pretty much baked into how traders think about the…
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It wasn't just oil doing the work. The U.S. dollar was also sliding against a basket of major currencies Thursday, and that gave the Canadian dollar extra lift.
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U.S. Treasury yields also fell during the session. That's relevant because lower yields tend to reduce the appeal of dollar-denominated assets, which nudges investors to spread…
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So you've got oil up, the U.S. dollar down, yields falling. Three things moving in the same direction at once. That's a decent setup for the loonie.
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Not everyone's piling in. Some traders are staying cautious, and probably for good reason. The Canadian dollar's next move depends heavily on whether oil can hold these levels or…
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Read also: Bank of America Bets Against Canadian Dollar as CAD/JPY Trade Risk Builds
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Interest rate policy adds another layer of uncertainty. The Bank of Canada and the Federal Reserve are both in the picture here, and any surprise in either direction from either…
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The Canadian dollar's performance is closely monitored by forex traders, especially given how exposed it is to energy sector moves.
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And honestly, that exposure cuts both ways. Canada's status as a major oil exporter means the currency can spike when crude runs hot, but it also means the loonie takes a hit…
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The recent appreciation also came against a backdrop of a stable domestic economic outlook in Canada. That stability matters.
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Crude at $78.46 per barrel. The loonie up. The U.S. dollar softer. And traders waiting on the next round of economic data.
The Currency Analytics
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