It’s a relationship that Canadians had gotten used to.
For years, when the price of oil went up, so did the value of the Canadian dollar. That led to a soaring loonie when oil prices were flying high, but double-takes while travelling in the U.S. once the wind came out of oil’s sails and the Canadian dollar was lower.
But a funny thing has happened of late, as the symbiotic relationship between the two has weakened. Or, as Bank of Montreal economist Doug Porter put it, “The Canadian dollar continues to diverge from its old dance partner.”
West Texas Intermediate is currently trading near its highest level since 2014, at just under $75 US a barrel. The rationale for that is simple: The global economy is steadily expanding, and that tends to increase demand for the oil that powers global trade.
Read full story here: Trade War Fallout: Why Oil And The Loonie Are Finally Headed Apart | CBC News
