Canadian Dollar outperforms major peers amid surging oil prices
- The Canadian Dollar trades broadly firm against its major peers as oil prices have increased significantly.
- Escalating Middle East conflicts have prompted global oil prices.
- The BoC is unlikely to cut interest rates in the near term.
The Canadian Dollar (CAD) trades higher against its major currency peers, but is marginally down to near 1.3735 against the US Dollar (USD) during the European trading session on Monday. The North American currency trades higher as the oil price gains sharply, with conflicts escalating in the Middle East.
Canadian Dollar Price Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.39% | 0.42% | 0.18% | 0.07% | 1.00% | 0.74% | 0.20% | |
| EUR | -0.39% | 0.03% | -0.18% | -0.32% | 0.73% | 0.34% | -0.19% | |
| GBP | -0.42% | -0.03% | -0.25% | -0.35% | 0.70% | 0.31% | -0.23% | |
| JPY | -0.18% | 0.18% | 0.25% | -0.09% | 0.83% | 0.49% | 0.02% | |
| CAD | -0.07% | 0.32% | 0.35% | 0.09% | 0.91% | 0.54% | 0.09% | |
| AUD | -1.00% | -0.73% | -0.70% | -0.83% | -0.91% | -0.38% | -0.79% | |
| NZD | -0.74% | -0.34% | -0.31% | -0.49% | -0.54% | 0.38% | -0.50% | |
| CHF | -0.20% | 0.19% | 0.23% | -0.02% | -0.09% | 0.79% | 0.50% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
As of writing, WTI Oil price trades 2.7% higher to near $100.15. Brent Oil trades 1.4% higher to near $109.75.
Higher oil prices are favorable for the Canadian Dollar, given that Canada is the largest oil exporter in the world.
Middle East conflicts have escalated as Iran vows to retaliate if military from the United States (US) or Israel attacks Iran’s power plants. Over the weekend, US President Donald Trump threatened to obliterate Tehran’s power plants if it doesn’t open the Strait of Hormuz within 48 hours.
On the domestic front, the Bank of Canada (BoC) is unlikely to cut interest rates in the near term, as higher oil prices have de-anchored inflation projections.
Meanwhile, the US Dollar (USD) outperforms as Iran conflicts have increased its safe-haven demand. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.4% higher to near 99.90.
Domestically, investors will focus
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