USD/CAD drops as OPEC+ boosts oil output by 548k bpd in August

USD/CAD has retreated from intraday highs following OPEC+'s decision to increase oil production by 548,000 barrels per day in August, significantly above the expected 411,000 bpd increase. The larger-than-anticipated output hike represents a 33% acceleration from previous monthly increases of 411,000 bpd scheduled for May through July. Higher oil production typically strengthens the Canadian dollar due to Canada's status as a major oil exporter, with energy exports accounting for approximately 22% of total exports. The announcement could pressure oil prices lower, though this may be partially offset by strong summer driving demand. Technical indicators show USD/CAD facing immediate support at 1.3650, with resistance at 1.3720. Traders should monitor WTI crude oil prices closely, as sustained moves below $80/barrel could limit CAD gains despite the production increase.