Canadian dollar rises above US$ as oil prices rise

The Canadian dollar moved above the U.S. dollar on Friday and was on pace for a second straight weekly gain as the commodity-linked currency drew support from higher oil prices.

Domestic bond prices, with no key Canadian economic data to consider, were lower across the curve following a surprisingly strong piece of U.S. housing data.
Part of the Canadian dollar’s strength was due to a weaker greenback, which has fallen as weak U.S. economic data released earlier this week cast doubt on expectations that the Federal Reserve would not cut interest rates further.

But the main factor was lofty oil prices, which bounced back above $125 a barrel after easing from a record near $127 earlier this week.

Reuters