Crude Oil Fuels Rally of Canadian Dollar

The Canadian dollar gained for the fifth straight day against the US dollar and the Japanese yen today, carried higher by the rally of crude oil prices. The Canadian currency was unable to beat the surprisingly strong euro.
Crude oil rallied more than 5 percent today before paring gains. The rally followed speculations that major oil-producing countries may cut output and forecasts that global demand will increase.
The advance of oil prices softened the impact of Canada’s negative macroeconomic data on the loonie. The Canadian trade balance deficit widened from $817 million in July to $2.5 billion in August. It was substantially above the median analysts’ forecast of a $1.1 billion deficit.
USD/CAD slipped from 1.3080 to 1.3043 as of 18:58 GMT today after rallying to the session high of 1.3133. EUR/CAD advanced from 1.4629 to 1.4701. CAD/JPY edged up to 92.15 (close to the highest level since September 1) from the open of 92.03 and the daily low of 91.60.

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