While there seems to be a disconnect between the Canadian dollar and when oil moves up, there is no disconnect when oil prices go down. Today oil came down from their five month high as crude oil inventories rise and statements from the International Energy Agency, that even though global inventories are dropping so is global demand due to a slowing global economy.
The USDCAD fell on this news yet the currency is no where its highs of last October when it was in the 1.2950 range. It would seem that traders are looking at any excuse to sell the Canadian. There is a chance that the tide is turning on hiking interest rates and there may be even a cut on the horizon, with all this uncertainty, the Canadian will remain weak.
Currently Close Range
USDCAD 1.3381 1.3319 1.3314-1.3396
EURCAD 1.5067 1.5015 1.5009-1.5087
GBPCAD 1.7482 1.7434 1.7420-1.7521
US: Jobless Claims wk4/6 204K 196K
Producer Price Index March M/M 0.1% 0.6%
Y/Y 1.9% 2.2%