Higher oil prices, higher bond yields and Bank of Canada’s comments allow for a stronger Canadian dollar

West Texas Intermediate Oil is trading at $63.22 USD a barrel, up $1.51, a one-year high, continued outages in the U.S and lower oil inventories helped boost short term pricing. Once U.S. refineries come back online, there may be some retracement there after.

Canadian bond yields have started to catch up to U.S. yields and are likely to match very quickly, also adding to potential higher rates, Bank of Canada   governor Tiff Macklem said on Tuesday, Canada’s economy will see a solid and sustained rebound this year as inoculations ramp up, while warning that Canada’s red-hot housing market is starting to show signs of “excess exuberance”. This may mean that the BoC may hike rates sooner in order to keep the real estate market in check.

We will have to wait and see.

Currently             Close                     Range

USDCAD               1.2535                   1.2586                   1.2532-1.2597

EURCAD               1.5217                   1.5292                   1.5212-1.5304    GBPCAD               1.7682                   1.7745                   1.7680-1.7879