The Canadian dollar experienced gains versus the US dollar following a recovery in oil prices. The close correlation between the Canadian economy and oil exports means fluctuations in oil prices often impact the Canadian dollar’s value.

The price of Western Texas Intermediate (WTI) crude oil, a key benchmark, saw an increase, providing support for the Canadian currency. Market analysts suggest that the positive movement in oil prices reflects increased optimism regarding global economic growth and demand.

Furthermore, investors are closely monitoring upcoming economic data releases from Canada, including inflation figures and employment reports. These data points will provide further insight into the strength of the Canadian economy and influence the Bank of Canada’s monetary policy decisions.

The Canadian dollar’s performance is also being influenced by broader market sentiment and risk appetite. Any shifts in global risk sentiment could lead to volatility in the currency pair.