Loonie Surges as Oil Prices Rise and Fed Rate Hike Bets Fall

The Canadian dollar has reached its highest value against the US dollar since June due to rising oil prices and decreased expectations for interest rate hikes by the Federal Reserve.

Rising crude oil prices, exacerbated by geopolitical tensions in the Middle East, have boosted the loonie (CAD) while weighing on the greenback (USD).

The USD/CAD pair has extended its decline from the top end of its weekly range for two consecutive days, hitting a fresh low since June 10.

According to TMGM analysis, traders have reduced their bets for an immediate interest rate hike by the US Federal Reserve following a soft Producer Price Index (PPI) report and weak US Consumer Price Index (CPI) data.