Given the 10% drop in oil prices this week, you would expect the Canadian dollar to be battered but that's not the case at all. The loonie is higher t
Given the 10% drop in oil prices this week, you would expect the Canadian dollar to be battered but that’s not the case at all. The loonie is higher today in a broad USD slump and lower by less than 50 pips on the week.
That says as much about the USD side and fears around banks, the debt ceiling and the Fed as it does about oil but there’s a hint of skepticism about the latest drop in crude in the FX market. The tone in USD/CAD further turned when Russia’s Novak said the drop required a detailed study for a possible OPEC+ response.
USD/CAD 10 mins
Domestically, the Bank of Canada governor Tiff Macklem is set to speak tomorrow at 1950 GMT and on Friday, the Canadian jobs report is out.
Also notable are signs of a re-acceleration in Canadian home prices, including a 2.4% monthly rise in Toronto. That’s being driven by surging immigration and pent up demand, despite high mortgage rates.
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