USD/CAD: Oil support but gains capped – Commerzbank

💡 DMK Insight

The Canadian Dollar’s recent uptick due to rising oil prices is noteworthy, but don’t get too excited just yet. While higher oil prices generally boost CAD, structural issues and its tight correlation with the US Dollar could cap its gains. Traders should keep an eye on the USD/CAD pair, especially if oil prices continue to climb. If CAD strengthens, it might be a good opportunity for short-term trades, but watch for resistance levels around recent highs. The real story is how the US Dollar’s movements will dictate CAD’s trajectory. If the USD strengthens, CAD could struggle despite oil’s bullishness. Keep an eye on economic indicators from both Canada and the US, as they could provide clues on the next moves in this pair.