The Canadian dollar traded sideways after it fell yesterday as crude oil declined on the Federal Reserve cut its US growth forecast. The currency attempted to rally against the US dollar.
Crude oil dropped after the International Energy Agency announced its plan to release oil from its strategic reserves and on prospects of higher output from Saudi Arabia. August futures for delivery of oil fell to $5.72 to $89.69 per barrel in electronic trading, before climbing to $92.35. MSCI World Index slumped 1.4 percent.
The loonie attempted to gain versus the greenback on rumors that the European leaders approved Greece’s austerity plans. Renewed hopes for a positive resolution of the European debt issues helped the Canadian currency to stop its drop against the yen, but haven’t helped to gain much.
USD/CAD fell today to 0.9781 today as of 4:36 GMT after rising yesterday from 0.9735 to 0.9787. EUR/CAD traded near 1.3949, following the drop from 1.3978 to 1.3952. CAD/JPY traded at about 82.25 after previous session’s decline from 82.41 to 82.21.
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