The Canadian dollar retreated after it jumped to the highest level since March 2008 versus its US counterpart. The Canadian currencies had gained as crude oil advanced on the concerns about supply from Middle East.
April contract for Brent crude oil dropped 1 percent to $102.77 per barrel on ICE after reaching yesterday $103.78, the highest price since September 25, 2008. Crude oil is Canadaâs main export. The crude jumped after Israeli Foreign Minister Avigdor Lieberman claimed that two Iranian gunboats are planning to move through the Suez Canal to Syria. It looks like the tensions in Middle East and North Africa won’t cease in the near future.
Despite the decline, the Canadian dollar still looks strong as the fundamentals are favorable to the currency. The Canadian wholesale sales increased for the fifth consecutive month in December, rising by 0.8 percent. The analysts predicted that today’s report will show that the consumer prices in Canada rose 0.3 percent in January.
USD/CAD traded at 0.9847 as of 1:55 GMT today after it it reached the
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