The recent boost in crude oil prices is supporting a bullishness in commodity currencies like the Canadian dollar, over rising hopes for OPEC+ nations to agree to implement deeper cuts in oil production. At the time of writing, USD/CAD is trading at around 1.404.

According to latest reports, Russia is expected to agree to production cuts, the sticking point at the last OPEC meeting which fueled a price war betweeen Saudi Arabia and Russia and sent crude oil prices crashing last month. This sentiment has helped lift the Canadian dollar from the four-year low it touched in March.

USD/CAD is also trading bearish over a weakness in the US dollar triggered by an improvement in the market sentiment overall, which has driven investors away from the greenback’s safety and towards riskier instruments. The number of coronavirus cases appear to be peaking, raising hopes in global markets that the worst may be over and that the rise in cases could soon slow down.