Strong start to the week for the loonie
USD/CAD is down 35 pips to 1.2543 in a strong start to the week for the loonie. It comes even with oil falling 2.5% to start the week as the OPEC+ decision shakes out.
It’s not all bad news for the loonie on the oil front. The discount on Western Canadian Select crude has fallen to $9.90 as transportation bottlenecks ease. That leaves WCS still above $50.
There were brief periods in 2018 and 2019 when Canadian oil traded above $50 but you have to go back all the way to 2014 to see sustained high pricing.
As for the loonie, there’s a seasonal tailwind in April and Friday’s strong non-farm payrolls also highlights the tailwind for Canadian exports. I spoke with Reuters on Thursday about the positive border spillovers.