The recent rally in oil prices has put a temporary floor in for the Canadian dollar.
After bottoming at $26.21 per barrel on February 11, West Texas Intermediate crude oil has surged nearly 45% to around $38.00 per barrel.
The oil bottom has been fantastic news for the Canadian dollar.
That’s because about 10% of Canada’s GDP and 87% of all jobs in the country are tied to the oil industry.
After hitting a low of 1.4683 on January 20, the Canadian dollar has strengthened nearly 10% to 1.3268 per dollar. And the rally likely isn’t over yet, according to Morgan Stanley.
The investment firm says they “don’t think the longer-term uptrend is complete.” And the current technical set up says “momentum suggests waiting until 1.30 to buy USDCAD again.”