The Canadian dollar was soft at the start of this trading week as crude oil slid, endangering the export-oriented economy of Canada. The currency attempted to recover against its US peer, but failed and remained weak against other major counterparts too.
Futures for delivery of crude oil in December slid below the $95 level, touching $94.06 per barrel — the lowest price since June. Crude oil is the major export commodity of Canada and as such it greatly affects the nation’s economy and currency.
Commodities were under pressure because of the last week’s huge rally of the US dollar. Traders shift their focus from the United States to Europe, but it is not likely that growth-related currencies will benefit from this. There are concerns that the European Central Bank may cut interest rates and such prospects are not helping the market sentiment.
USD/CAD rose from 1.0417 to 1.0422 yesterday and jumped to 1.0430 as of 1:41 GMT today. EUR/CAD traded at 1.4083 after yesterday’s rally from 1.4048 to 1.4085. CAD/JPY dipped from 94.55 to 94.30 today.
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