The Canadian dollar is rising against its major currency peers to kick off the trading week, driven by higher crude oil prices and consumer confidence. After being in freefall for two months, the loonie has seemingly stabilized and is looking to make up for lost ground. But could the Canadian dollar trend higher in the fallout of the coronavirus pandemic?

Consumers are becoming more confident as the national economy reopens gradually, says a new survey. The Bloomberg Nanos Canadian Confidence Index found that confidence consumer is rebounding from its all-time lows last month as there is more talk of reopening the country.

But while the mood is still sour, there have been major improvements in several areas. The poll found that 36.7% of Canadians believe their personal finances have worsened over the past year, down from 42.3% in April. Twenty percent are concerned about job security, down from 25% a month ago. A few weeks ago, 80% thought the economy would worsen, but now it is slightly down to 73%.

Housing is the only segment that consumers do not project will improve. Half of the respondents still anticipate housing prices will fall, which remains a record high and is triple the annual average.

On Friday, Statistics Canada reported that retail sales collapsed 10% in March, down from the 0.4% gain in February. This represented the largest monthly drop in retail trade in history, led by declines in the motor vehicle and parts dealers industry, apparel, and gasoline stations. There was a significant boost in sales of food and beverage (22.8%) and general merchandise (6.4%). The statistics agency forecasts a 15.6% plunge in retail sales in April.

Later this week, first-quarter gross domestic product (GDP), building permits, and producer price index (PPI) data will be released.

Meanwhile, rallying energy prices continued to contribute to the loonie’s jump on Monday. July West Texas Intermediate (WTI) crude oil futures advanced $0.79, or 2.35%, to $34.03 per barrel on the New York Mercantile Exchange. July Brent crude futures surged $1.22, or 3.47%, to $36.35 a barrel. Oil remains Canada’s top export, so any change in prices – high or low – can impact the national economy.

Oil is poised to record its best monthly performance ever, skyrocketing 163% in May.

The USD/CAD currency pair tumbled 0.16% to 1.3983, from an opening of 1.3996, at 16:57 GMT on Monday. The EUR/CAD slipped 0.22% to 1.5231, from an opening of 1.5262.