USD/CAD: Canadian dollar should improve considering higher energy prices – NFB

Matías Salord FXStreet

The Canadian dollar has weakened during the last weeks despite surging energy prices. According to National Bank of Canada analysts, the correlation is unusual, and they see that energy prices should decline further or the loonie strengthen.

Key Quotes:

“The Bank of Canada's index for the price of energy commodities produced in Canada (oil, natural gas, coal) reached a multi-year high early in the fourth quarter. Despite this surge, the Canadian dollar has weakened in recent months. It is unprecedented to see the CAD so weak given current prices. Something has to happen: either energy prices fall or the loonie strengthens.”

“Given that we don't see much downside to energy prices in the coming months, we think the CAD should improve.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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