The Canadian dollar is posting modest gains at the end of the trading week, buoyed by higher energy prices and positive manufacturing data. Amid cratering crude prices, the loonie has struggled to find direction, mainly because traders are waiting to see what the Organization for Petroleum Exporting Countries (OPEC) will do relating to output.
The USD/CAD currency pair today traded in a consolidative range extending a trend that has been going on since the start of the week. The currency pair has been range bound despite the commodity-linked loonie being relatively weak due to the massive drop in global crude oil prices as tracked by the West Texas Intermediate.
The Canadian dollar is trading relatively sideways on Tuesday as the price of crude oil crashes. The loonie, which slipped to a four-month low early in the trading day, is attempting to snap its four-session losing streak. Without any major Canadian events, investors may not have an appetite for the currency.
The US dollar is strengthening at the end of the trading week, buoyed by new economic data that shows inflation pressures remain in check. The greenback further accelerated on a hawkish central bank that is set to raise interest rates next month. The currency’s gains were capped by retreating Treasury yields.
The USD/CAD currency pair today extended yesterday’s gains as the Canadian dollar dropped against the greenback amid the ongoing as the global crude oil selloff. The pair’s rally was further accelerated by news reports that a US Federal Court had stopped the construction of the Keystone XL pipeline that connects Canadian oilfields to Texas oil pipelines.
The Canadian dollar was unable to keep the momentum from last week’s strong jobs report, and the loonie could not get a boost on Monday on bullish comments from the head of the Bank of Canada (BOC). Investors might find direction in the results of Tuesday’s US midterm elections, as well as some American and Canadian economic data this week.
The USD/CAD currency pair today rallied from fresh weekly lows to new daily highs in the early American session following the release of the latest Canadian jobs data. The pair’s rally was further boosted by the release of the upbeat US non-farm payrolls report, which triggered a massive rally by the greenback against most of its peers.
The US dollar is weakening against some of its counterparts midweek, despite several bullish indicators to suggest the economy is still strong. The labor market remains healthy, wages are climbing, and business confidence continues to jump. The greenback might be taking a breather after rallying earlier this week.
The Canadian dollar failed to gain today despite better-than-expected growth of Canada’s economy. The possible reasons for the weakness were: the strength of the US dollar, the decline of crude oil prices, and other macroeconomic indicators, some of which were not that good.
The Canadian dollar is trading slightly lower on Monday as the buzz from the Bank of Canada (BOC)’s recent increase to interest rates has ostensibly faded. Investors will comb through various reports and forecasts pertaining to the national economy in both the short- and long-term until important data is published. It did not help with energy prices tumbling to start the trading week.
