# Canadian dollar decouples from oil, adding to BoC inflation headaches | Reuters

> The Canadian dollar has decoupled from oil despite crude hitting 14-year highs amid the Russia-Ukraine crisis. The historic link that let the central bank rely on a stronger currency to curb energy-driven inflation has weakened.

- Date: 2022-03-08 · published 2022-03-08T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/42497-canadian-dollar-decouples-from-oil-adding-to-boc-inflation-headaches-reuters
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

The loss of the oil-currency link complicates Canadian inflation policy and makes the loonie a weaker offset to imported commodity costs.

## Read by commodity

- WTI: bullish ▲
- USDCAD: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-09-18 | [Canadian dollar hits 1-month high ahead of inflation data](https://feedsoft.ai/events/34337-canadian-dollar-hits-1-month-high-ahead-of-inflation-data.md) | -0.9% | -3.5% |
| WTI | 2021-08-18 | [Canadian dollar rallies after hotter-than-expected inflation data](https://feedsoft.ai/events/45794-canadian-dollar-rallies-after-hotter-than-expected-inflation-data.md) | +1.5% | +9.1% |
| WTI | 2022-05-05 | [Canadian dollar seen rebounding as high oil price feeds trade surplus \| Reuters](https://feedsoft.ai/events/41653-canadian-dollar-seen-rebounding-as-high-oil-price-feeds-trade-surplus-reuters.md) | -2.1% | +8.4% |
| WTI | 2021-05-12 | [Canadian dollar notches 6-year high as U.S. inflation jumps](https://feedsoft.ai/events/47331-canadian-dollar-notches-6-year-high-as-u-s-inflation-jumps.md) | +0.3% | +7.1% |
| WTI | 2016-12-12 | [Canadian dollar posts fresh seven-week high as oil climbs \| Reuters](https://feedsoft.ai/events/73701-canadian-dollar-posts-fresh-seven-week-high-as-oil-climbs-reuters.md) | +0.8% | -1.3% |

## Sources

- reuters.com: https://www.reuters.com/business/canadian-dollar-decouples-oil-adding-boc-inflation-headaches-2022-03-08/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.