Loonie Lags as Oil Prices Soar

0:00Oil prices are spiking, but the Canadian dollar ain't keeping up like it used to. Back in the day, higher crude men are stronger loony, but since Middle East fighting broke out late February, West Texas Intermediate jumped. 34% while the loony is 0.2% against the US dollar. Other commodity currencies are thriving though. The Norwegian Crone and Australian dollar have climbed steadily in the same stretch, leaving the loony in the dust. Here smell weakness and are piling in short positions, with hedge funds turning the most bearish on it this year through mid-April. Big banks like CIPC and JP Morgan are telling folks to bet against the loony versus the Aussie dollar, Norwegian Crone, even the Mexican peso as trade, talks heat up. This shift ties the Canada's oil sands, losing steam. Investment there has shrunk as a slice of the economy, high extraction costs hurt competitiveness, and companies now ship most profits to foreign, shareholders instead of reinvesting locally. The tie between oil and the loony isn't snapped for good.

1:03Experts say if prices climb from strong global demand, that old correlation could fire back up, so keep eyes on forex flows. I'm Corey with the story, and you've been listening to Calgary News today, AI-powered