The Canadian dollar is up 0.4% as oil has stabilized after falling sharply for three days on concerns about the delta variant and its impact on global economic growth. Also helping the loonie is the fact that Canada reported a healthy trade balance in June while expectations were for a modest trade deficit. The increase in exports came largely as a result of increased oil exports due to improving demand as the US economy recovered from the pandemic closures. The US dollar is actually up against most other currencies (despite being down against CAD) because yesterday a Fed speaker hinted at a rate hike in late 2022 instead of 2023. Tomorrow, all eyes will be on jobs on both sides of the border as both countries report July employment figures. The jobs numbers tomorrow may provide further indication as to how quickly central banks in each country will move to rein in monetary policy. USD to CAD is currently at 1.250 (CAD to USD at 0.800).
