The Canadian dollar failed to hold onto its earlier gains and dropped by the end of Monday’s trading session due to the rout of crude oil prices.
Crude oil was demonstrating impressive performance last week thanks to speculations about a potential deal among oil producers to reduce output, thus easing oversupply on the market. The loonie was marching along with oil prices to the upside. Yet now market analysts speculate that the deal does not look probable, and such talks sent crude oil tumbling.
Without the support of crude, the Canadian currency had no choice but to went down as well. The decline of global stocks was not helping the matter either. While the currency has been attempting to hold its ground against some majors earlier today, it is trading far below the opening level as of now.
USD/CAD ticked up from 1.3897 to 1.3933 as of 23:10 GMT today. EUR/CAD advanced from 1.5484 to 1.5600. CAD/JPY declined from 84.01 to 82.89.
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