Forex
CAD Soars as Oil Prices Climb and US Dollar Weakens
The Canadian Dollar has strengthened against its US counterpart as oil prices continued their upward trend and pressure on the USD increased, pushing USD/CAD towards fresh August lows.
Oil prices have been a major driver of the CAD's recent gains, with WTI crude rising over 1% to near $85.58 a barrel due to ongoing supply risks in the Strait of Hormuz.
The CAD has also benefited from fading expectations that the Federal Reserve will deliver another near-term rate increase, which has weighed on the US Dollar and boosted the Loonie.
ING strategists Chris Turner and Francesco Pesole remain cautiously constructive on the Canadian Dollar, predicting it could fall to 1.38 by year-end due to broader USD weakness.