Crude Rally Lifts CAD, USD/CAD Drops to 1.34

Following the OPEC+ announcement to extend production cuts, international oil prices rebounded sharply, benefiting the Canadian dollar — the G10 currency most positively correlated with crude oil. USD/CAD fell to 1.3420, a near four-month low. Canada's May employment report was also strong, with 27,000 jobs added, beating expectations, and the unemployment rate holding at 6.2%. The Bank of Canada hinted at its last meeting that further cuts are possible if needed, but strong employment and oil price data have caused markets to reduce the probability of additional easing. Technically, 1.3400 is key support; a break lower could open the way to testing 1.3200.