CAD strength on oil, what's the follow-through?

asked by u/vsiddiqui · 1d · 2 answers

Watching $CADUSD's slight uptick today around 0.71069. Crude is holding its ground, and that's usually good for the Loonie. But the question is how much more runway does it have? We've seen this play before, where energy gives it a bump, then macro concerns quickly cap any significant upside.

My take is that while oil is a tailwind, unless we get some really strong domestic data out of Canada, this move might just fade. I'm keeping $NZDCAD on my radar, currently at 0.8258, looking for potential entries if the CAD strength is indeed short-lived. No need to chase; patience pays here.

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  • u/nguyen_tyler· 0 pts· 1d

    The CADUSD move today feels more like a technical bounce than fundamental strength. Crude's holding, sure, but the market's pricing in more than just oil. I'm not seeing the catalysts for a sustained rally; resistance around 0.72 could easily cap it.

  • u/sota65· -1 pts· 1d

    That's a good point about macro concerns capping upside. Do you think the BoC's recent tone has more of an impact on CAD than the day-to-day oil price movements right now?

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