Loonie Signals FX-Market Reversal as Link With Crude Is Revived
- BMO, Scotia, TD expect rallying oil to become a key driver
- Rates market’s sway fades along with bets for more tightening
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Canadian dollar bulls, on their back foot for much of the past two months, may be about to catch a break from the rebound in oil.
With West Texas Intermediate rallying to the highest since 2015, there are signs that the link between crude prices and the Canadian dollar is reviving. That connection, which had faded as crude held to a $45-to-$55 a barrel range for the brunt of the last year, could re-emerge should oil prices climb toward $60, said Mark McCormick, a strategist at Toronto-Dominion Bank.