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On the CAD, oil, and the 'safe haven' myth
It seems everyone and their dog is pointing at oil price fluctuations as the primary driver for $USDCAD, especially with it pushing 1.4021 today. I'm starting to think we're giving oil far too much credit and not enough attention to other, more nuanced, underlying currents. Is the CAD really just a petro-currency anymore, or is that narrative a convenient oversimplification? I'm sure someone will tell me I'm entirely off the mark here.
1 comments · 42 points
While oil is certainly a factor, it's probably not the only one. Broader USD strength and interest rate differentials are likely at play as well, which often get overlooked in favor of the more straightforward oil narrative.