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CAD: Breaking The Chain With Oil; Where To Target? –

The Canadian dollar has shown a lot of weakness lately. Will this continue? Here is the view from CIBC:

Here is their view, courtesy of eFXnews:

Oil prices have seen a pretty significant rebound from February’s lows. However, the upward move has had its fits and starts, and examining trends in the loonie during these different periods highlights a change in the Canadian dollar’s relationship with WTI.

Over the first two periods of WTI’s uptrend, the C$ outperformed other currencies and appreciated against the greenback. Given the close correlation between the loonie and oil, that’s not a great surprise.

But recently, the C$ has not only fallen against a rebounding US$ but also underperformed other currencies. That goes to show that even with oil prices recovering, domestic factors can bring C$ depreciation.

Look for the C$ to weaken further as Canadian data continues to disappoint.

CIBC targets USD/CAD at 1.37 by the end of Q3.  

oil moves higher in stages CAD no longer outperforming

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.