MarketPR
The Canadian dollar held a narrow band against the US greenback on Tuesday, with USD/CAD anchored near 1.3650 after West Texas Intermediate crude gained approximately 1.2% to trade above $78 a barrel during the North American session.
The move erased part of an earlier slide that had come on broad-based US dollar strength at the start of the week. Energy markets supplied the catalyst; the Bank of Canada's cautious policy stance supplied the ceiling.
Oil Inventory Data Drove the Crude Bid WTI moved on two inputs: reports of declining US crude inventories and ongoing geopolitical tension in key producing regions — the source does not name them.
The inventory-drawdown story is the kind that can be revised in the next weekly print, and geopolitical risk premiums in crude have a habit of deflating faster than they inflate.
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