Oil to support CAD and NOK in coming weeks? - Nomura

Analysts at Scotiabank explained that CAD and NOK have diverged notably from oil prices in recent weeks. 

Key Quotes:

"Such a decoupling from the terms of trade is not uncommon, but seldom lasts over the medium term. Idiosyncratic and domestic factors help explain CAD and NOK underperformance, but low oil price volatility and the move higher in UST yields have also played roles in reducing sensitivity to oil prices."

"With much negativity already priced into CAD and NOK and US bond yields stabilising, the backdrop may turn more conducive for a realignment of FX with oil prices and this may keep both currencies supported in coming weeks."