Canadian Dollar Sinks with Oil Prices

The Canadian dollar sank yesterday and retained its losses today due to the drop of crude oil prices. Crude declined as the complicated situation with Greece deterred traders from buying commodities.
West Texas Intermediate grade of crude oil (US benchmark grade) continues to trade below the $60 level. Prices were under pressure from the risk-averse sentiment on the market caused by Greece. Oversupply is also a concern, especially considering the possibility that Iran may return to global markets.
Previously, the Canadian currency was getting a support from the positive outlook for the economy of the United States, Canada’s neighbor and the biggest trading partner. Yet the recent string of poor economic reports tempered optimism for the US economic growth, leaving the Canadian dollar vulnerable to negative events and factors.
USD/CAD climbed from 1.2313 to 1.2402 yesterday and traded at 1.2410 as of 00:29 GMT today. EUR/CAD advanced 1.3 percent from 1.3755 to 1.3933 on Monday, bouncing from the daily low of 1.3510, and traded at about 1.3914 at start of Tuesday’s trading. CAD/JPY was near 98.74 today following yesterday’s slump by 1.7 percent from 100.52 to 98.77.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *