The Canadian dollar is set to end the week about half a penny above where it started but only after a roller-coaster week in which currencies bounced around on shifting risk appetites and volatile oil prices. The loonie approached new lows for 2021 on Monday when worries about Covid variants and a big drop in oil prices had investors moving into USD. By Wednesday, variant worries had receded in the face of strong corporate earnings and oil recovered most of its losses. In turn, CAD spiked to just above where it had started on Monday. We have basically held there since then and USD to CAD is currently at 1.258 (CAD to USD is at 0.795). Next week could be volatile again as it brings a slew of economic data that could move the market. Most importantly, we get the Fed statement on Wednesday which will give us further guidance on US monetary policy. On that same day, in Canada, we get a highly anticipated June inflation report.
