The Canada Dollar is well supported to begin the week with crude oil trading comfortably over the $108/bbl mark, the highest since September 2009. However, with markets fearing that the recent spike in oil could weigh on global economic growth, the CAD has struggled to break its 30- month high.
Copper, another major Canadian export, has also recovered from a two-week low, as investors speculate that current production will not meet demand as Japan begins to rebuild and emerging market nations continue to grow.
Investors will also pay particular attention to this week’s labor and housing reports ahead of next week’s BoC meeting. While the Bank is widely expected to keep rates on hold at 1%, hawkish rhetoric could see the loonie push higher.(www.ibtimes.com)