USDCAD 10 mins
USD/CAD has given back gains on broad Canadian dollar strength, thanks to a big rebound in oil prices.
The pair is trading at 1.3435 from a high of 1.3501 just a few hours ago. Data from Canada today was soft but trading in the loonie has been about weak Chinese trade data more than the domestic numbers. More recently, the rebound tracks a big bounce in WTI crude to $81.97 from a low of $79.90.
The $2 bounce in crude isn’t getting much help from broader markets or sentiment. The S&P 500 remains near the lows of the day, down 0.9%.
Natural gas prices have also been strong this week on high US power demand. Natty is up 1.6% after a 6% rise yesterday.
For crude, we will get weekly API private oil inventories today and I wouldn’t be surprised if a bullish number had already leaked. If that’s the case, we will likely see some ‘sell the fact’ trades afterwards or following Wednesday’s EIA data.