CAD Higher on Oil Surge

The Canadian dollar strengthened against its U.S. counterpart on Tuesday as oil rose and the greenback lost ground against a basket of major currencies.

At 9:16 a.m. ET (1316 GMT), the Canadian dollar CAD=D4 was trading at C$1.2496 to the greenback, or 80.03 U.S. cents, up 0.4 percent.

The currency’s weakest level of the session was C$1.2555, while it touched its strongest since Thursday at C$1.2495.

Canada’s bond and stock markets were closed on Monday due to the Thanksgiving Day holiday.

usdcad Canadian dollar graph, October 10, 2017

Prices of oil, one of Canada’s major exports, were supported by Saudi Arabian export cuts for November and comments from OPEC and trading companies that the market is rebalancing after years of oversupply. U.S. crude CLc1 prices were up 1.73 percent at $50.44 a barrel.

The U.S. dollar .DXY broadly fell after stronger-than-expected German trade data boosted the euro.

Bank of Canada Senior Deputy Governor Carolyn Wilkins will participate in a panel discussion at 2 p.m. ET (1800 GMT) for the International Monetary Fund Annual Meetings Seminar series. The topic is “Systemic Risk and Macroprudential Stress Testing.”

via Reuters

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