This morning’s trade numbers for Canada is for August, basically 6 weeks ago, oil was trading at the $70 USD a barrel for West Texas Intermediate, today it’s over $79 USD a barrel, meaning that Canada’s Merchandise Trade for October will be even bigger. This is being reflected in the strength of the CAD to the USD. Energy commodities as group have moved significantly and while this bodes well for the CAD, the average Canadian is facing an expensive winter. Natural gas has basically doubled this year and will likely stay at these levels now that summer is over. Those of you who pay on a preset monthly basis will have a big year end payment, be prepared. OPEC has indicated that it will resist increasing oil production as it believes that Covid’s impact still has not fully left the global economies. Supply chain disruptions still exist, and until these are remedied OPEC will maintain current production levels. Expect prices to stay high in the near term, and with it a stringer CAD.
Currently* Close Range
USDCAD 1.2552 1.2587 1.2552-1.2629
EURCAD 1.4555 1.4626 1.4555-1.4642
GBPCAD 1.7121 1.7131 1.7102-1.7170
*Indicative Rates Only
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