What’s going on here?
The Canadian dollar (loonie) climbed 0.1% against the US dollar, trading at 1.3553, or 73.78 US cents, clawing back from a recent two-week low.
What does this mean?
The loonie’s rebound can be chalked up to two main factors. First, it held steady at the 1.36 level. Second, a surge in US stocks signaled to investors that it’s time for ‘risk-on mode,’ according to Bannockburn Global Forex LLC’s chief market strategist. Wall Street is rallying on hopes of interest rate cuts from the Federal Reserve in 2024, with a crucial US inflation report due on Wednesday. Plus, a 1.5% boost in US crude oil futures – significant given Canada’s status as a major oil producer – also supported the Canadian dollar.
Why should I care?
For markets: Oil and optimism push the loonie.
The rally in US crude oil futures to $68.67 a barrel is a big deal for Canada, a leading oil exporter. This, combined with buoyant US stock markets,…
