Forex
Canadian Dollar Surges Despite Soft Oil Prices and US Inflation Data
The Canadian Dollar has strengthened despite subdued oil prices, but its gains may be short-lived as investors remain cautious about the impact of falling crude on the currency.
US inflation data for July showed a flat rate, cooling below the projected 0.2% growth, which led to a decline in the US Dollar (USD). The USD/CAD pair lost ground for the second consecutive day, trading around 1.3920 during Asian hours on Friday.
The commodity-linked Canadian Dollar may face headwinds from falling crude oil prices, but TD Securities suggests that fundamental tightness across crude and product markets will support further upside in oil prices despite recent losses.