Rising crude prices and increased Bank of Canada rate hike expectations push the CAD higher against the USD in early trading.
The USD/CAD pair declined to 1.4165 during Asian trading hours on Thursday, driven by a surge in crude oil prices. The commodity-linked Canadian Dollar found support as oil rallied, bolstering its value against the US Dollar.
Traders are also pricing in higher odds of a Bank of Canada rate hike, further strengthening the CAD. Market participants await the US weekly Initial Jobless Claims report later today for additional direction.
The move reflects broader sentiment around commodity currencies and central bank policy expectations, with oil remaining a key catalyst for the CAD.