USD/CAD: Anchored oil prices to put pressure on the loonie – RBC

Canada’s dollar is holding up surprisingly well in the face of the sharp drop in commodity prices in particular oil, per the Royal Bank of Canada.

Key quotes

“Optimism that policy support will help the economy emerge from the crisis in the months ahead plus a partial recovery in risk assets is keeping Canada’s dollar in a relatively tight range about 71 US cents.”

“As economies come back on line, there is scope for Canada’s dollar to come under some downward pressure especially in oil prices remain around current levels.”