The Canadian dollar is performing at a level that is top notch in the G-20, as it managed yesterday to hit the 80-cent level.
Eighty cents is noteworthy, but not so much as how it got there.
On May 7, the dollar was trading at 72.34 cents U.S., riding the coattails of stronger than forecast economic and export growth, consumer confidence – which gained again last month – and retail sales that continue to be strong.
On Tuesday morning, oil prices are over $47 a barrel and look as though they may continue to strengthen, at least through the summer driving season.
They’ve also been aided by the Saudi announcement pledging to cut its exports to help rebalance global supply and demand.
However the world is still awash in oil and with the strength of the dollar, the Bank of Canada may be tempted to keep rates steady for the rest of the year, which could put a lid on further dollar gains.