The bulls are seen tightening their grip on the Canadian dollar as the oil prices halt the corrective slide and revert to the green zone. Both crude benchmarks now trade +0.20% higher, hovering near fresh five-month peaks reached yesterday after the EIA inventory report showed smaller than expected rise in the US crude supplies.
The greenback moved in lockstep with soaring oil prices on Wednesday, rising considerably in U.S. afternoon trading. U.S. crude futures pared earlier losses from Wednesday morning, after the U.S. Energy Information Administration (EIA) said U.S. commercial crude oil inventories increased by 2.1 million barrels for the week ending on April 15. As a result, WTI crude surged more than 3% to eclipse $44 a barrel.
The recent optimistic remarks from BOC Governor Poloz also keep the sentiment around the loonie underpinned. BOC Chief noted that the economic data have been encouraging and it would require three-year adjustment to oil price drop.
The US economic releases will be also closely watched for further momentum on the major.