USD/CAD trades like oil's shadow
published 09:27 · updated never, that’s the point
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The loonie takes its name from the loon, the bird stamped on the Canadian one-dollar coin, and it trades like an oil producer's currency.
USD/CAD tends to fall when crude oil rallies because Canada is a major oil exporter and a higher oil price improves the country's terms of trade, and the pair also moves on the gap between Bank of Canada and Federal Reserve policy rates as that spread shifts the relative pull of the two currencies.