The Canadian dollar slid against other most-traded currencies today due to the slump of crude oil prices and the resulting risk-negative sentiment.
Prices for crude was falling as traders started to realize that capping production close to record level is not going to alleviate oversupply on the market. Unsurprisingly, the Canadian currency reacted negatively to the drop of oil prices. The loonie fell not just because Canada’s economy heavily depends on oil exports but also because the drop of prices resulted in a sell-off of global stocks and the general risk-adverse sentiment among market participants.
Adding to the negative factors, some analysts were talking about a potential interest rate cut from the Bank of Canada. As one could expect, the slew of bad news resulted in a drop of the Canadian dollar. The currency dropped even against the very weak euro.
USD/CAD advanced from 1.3705 to 1.3795 as of 23:54 GMT today. EUR/CAD gained from 1.5114 to 1.5207. CAD/JPY declined from 82.35 to 81.06.
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