Oil Back Above $100 Sends Shockwaves Through CAD, NOK Pairs
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Crude oil's push back above the $100 mark is reshaping forex flows into commodity-sensitive currencies. CAD and NOK, both tied closely to energy exports, are seeing renewed buying interest as traders position for terms-of-trade improvements, while energy-importing currencies face fresh pressure from rising import costs.
The bigger story for FX markets is what sustained $100 oil means for central bank policy paths. A prolonged energy shock complicates inflation control just as rate-cut expectations were building, meaning currency pairs tied to rate differentials — particularly USD crosses — could see renewed two-way volatility as inflation data surprises to the upside.