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Canadian Dollar Rallies Against US Peer, Falls on FOMC Minutes

August 19, 2020 at 18:33 by Simon Mugo

Loonies

The Canadian dollar today rallied slightly against the US dollar after the release of the mixed Canadian inflation data for July before losing its gains later. The USD/CAD currency pair then recouped its losses as the greenback recovered and rallied higher during the American session.

The USD/CAD currency pair today fell to a low of 1.3133 before recovering and rallying to a high of 1.3187 and was near these highs at the time of writing.

The currency pair fell earlier today as the loonie rallied against the greenback despite North American crude oil prices as tracked by the West Texas Intermediate falling to a low of 42.33. The release of the Canadian consumer price index report for July in the early American market had a muted impact on the loonie. According to Statistics Canada, the country’s headline and core inflation prints fell 0.1% in July. The annualised core CPI came in at 0.7%. Canada’s wholesale sales rose 18.5% in June boosting the pair.

The pair later headed higher as the greenback recovered as tracked by the US Dollar Index, which hit a high of 92.90 today. The pair extended its gains after the release of the US Federal Open Market Committee meeting minutes, which were slightly hawkish.

The currency pair’s future performance is likely to be affected by crude oil price and US dollar dynamics.

The USD/CAD currency pair was trading at 1.3208 as at 18:32 GMT, having rallied from a low of 1.3187. The CAD/JPY currency pair was trading at 80.21, having risen from a low of 79.88.

If you have any questions, comments, or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

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