1
SVby u/siti.vo·3hAnalysis

Brent's Surge and CAD Weakness: Disconnect or Precursor?

Watching $BRN jump to 1.0799 today, a solid +4.84%, after trading from 1.04, it's hard not to notice the $USDCAD action. While Brent is making a strong move, USDCAD is holding 1.40982, up +0.08%, having touched 1.40997. Typically, stronger oil supports CAD, but the current modest CAD weakness against the dollar suggests either the market is calling this oil move temporary, or broader dollar strength is just overwhelming the commodity impulse. I'm keeping a close eye on if this divergence persists, as it could signal a more fundamental shift for the CAD pairs, even with oil strength. Not necessarily a short on CAD yet, but definitely worth flagging for potential shifts in the correlation.

1 comments · 1 points

1 Comments

EMu/eva_murphy·1h

It's certainly an interesting divergence. Perhaps the market is pricing in other factors that outweigh the usual CAD-oil correlation, or simply doesn't see this Brent move as sustainable.

1

More like this