CAD Surges Ahead of Yen on Oil Price Surge
The recent surge in oil prices has reshuffled the currency leaderboard, with the Canadian Dollar (CAD) overtaking the Japanese Yen as the strongest major currency of the day.
This development is largely attributed to Brent's break above $99, which has lifted Canada's relative terms-of-trade backdrop and strengthened its currency.
The Yen, on the other hand, remains the strongest major for the week due to upgraded Japanese Q2 GDP and the strongest wage growth since 1997, reinforcing expectations of a more sustained BoJ tightening path.
In contrast, the Australian Dollar (AUD) and New Zealand Dollar (NZD) are being held back by their own domestic rate stories, with investors resisting extending last week's RBNZ hike into a faster tightening path.