Canadian Dollar Steady on Lower Oil and Dovish Outlook

2026-05-07 15:43 By Isabela Couto 1 min. read

The Canadian dollar weakened toward the 1.635 mark per USD from the seven-week high of 1.358 on April 30th, losing some ground due to the outlook of a dovish Bank of Canada and lower crude oil prices.

The US stated that it was close to reaching a peace deal with Iran that would restore oil supply through the Strait of Hormuz.

The resulting decline in crude oil prices limited the outlook of foreign exchange inflows to Canada due to lower turnover on oil exports.

Meanwhile, the latest round of GDP data flagged a slowdown in the economy following the start of the war, supporting the Bank of Canada's dovish tilt in its guidance, opting to prioritize growth as inflation was not yet entrenched.

Preliminary GDP data reflected a stall from the previous month in March despite higher energy output.



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Canadian Dollar Steady on Lower Oil and Dovish Outlook
The Canadian dollar weakened toward the 1.635 mark per USD from the seven-week high of 1.358 on April 30th, losing some ground due to the outlook of a dovish Bank of Canada and lower crude oil prices. The US stated that it was close to reaching a peace deal with Iran that would restore oil supply through the Strait of Hormuz. The resulting decline in crude oil prices limited the outlook of foreign exchange inflows to Canada due to lower turnover on oil exports. Meanwhile, the latest round of GDP data flagged a slowdown in the economy following the start of the war, supporting the Bank of Canada's dovish tilt in its guidance, opting to prioritize growth as inflation was not yet entrenched. Preliminary GDP data reflected a stall from the previous month in March despite higher energy output.
2026-05-07
Canadian Dollar Hits 7-week High
The Canadian Dollar touched 1.36 against the USD, the highest since the begining of March and heading for its biggest monthly gain since April 2025 as the greenback weakened broadly and investors weighed the impact of higher oil prices on interest rates.The DXY was trading lower for a 2nd session, with losses driven largely by a sharp advance in the yen following suspected intervention by Japanese authorities in currency markets.The CAD was also supported by a slightly less dovish Bank of Canada and high commodity prices. The central bank signaled on Wendesday it could raise rates consecutively if elevated energy prices persist and fuel inflation, prompting markets to reassess the policy outlook.
2026-05-01
CAD Strengthens Following North American GDP Data
The Canadian dollar strengthened to 1.36 per USD, a one-month high, on support from a weaker greenback as markets assessed the outlook for the Bank of Canada. The US dollar pulled back as energy prices halted their rally and drove emerging markets to limit their aggressive pivot to the greenback. On top of that, an acceleration in domestic wages also supported the loonie. Meanwhile, data showed Canada’s GDP stalled in March, suggesting high energy prices weighed on overall spending. The outcome aligned with the BoC’s decision to hold rates this week, noting that inflation remains stable and that rising energy costs have not yet unanchored household expectations, dismissing an immediate need for more restrictive policy.
2026-04-30