The Canadian dollar was able to overcome the negative impact of falling prices for crude oil, bouncing from the daily lows during the Monday’s trading session.
Crude oil fell today as poor economic data from China had a negative influence on commodity markets. Additionally, crude declined amid doubts that major oil producers would be able to reach an agreement about cutting output.
Usually (especially at the recent times), the loonie closely follows moves of oil prices. Indeed, the currency had declined intraday, yet it managed to bounce closer to the opening level (and even rise above it versus the US dollar) by the end of Monday. The likely reason for the bounce was the outlook for smaller and slower monetary tightening from the US Federal Reserve.
USD/CAD traded at 1.3950 as of 23:56 GMT today after rising from 1.3971 to 1.4061 intraday. EUR/CAD attempted to rise from 1.5133 to 1.5332 but pulled back to 1.5199. CAD/JPY bounced to 86.60 following the drop from 86.79 to 85.86.
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