The Canadian dollar declined against its major peers today as the news about a deal between Saudi Arabia and Russia to keep output of crude oil the same was not welcomed by markets.
The news that the major oil producers are going to keep production unchanged was not what markets have been waiting for. Preserving nearly record high output levels is not going to solve the supply-demand imbalance. As a result, prices for crude oil were tumbling during the current trading session.
The Canadian dollar usually has strong correlation to crude in regard to its moves, though recently the tie has weakened a bit and the two assets were showing a divergent performance from time to time. Yet it was not so today as the loonie followed the decline of oil prices.
USD/CAD advanced from the opening of 1.3832 to 1.3886 as of 20:59 GMT after touching the session low of 1.3705 intraday. EUR/CAD was up from 1.5428 to 1.5473, bouncing from the low of 1.5303. CAD/JPY went down from 82.79 to 82.08.
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