The Canadian dollar was flat against its US counterpart on Monday and remained little changed during Tuesday’s trading. The loonie was falling against other majors, including the euro and the Japanese yen.
Unlike some other commodity currencies, the Canadian dollar did not get much help from China’s stimulus. The reason for the underperformance was the drop of crude oil — the key commodity for Canada. Movement of the loonie strongly correlates with moves of oil prices.
The Canadian currency demonstrated better performance against the US dollar due to the disappointing housing data from the United States. The report made the greenback weaker against other majors.
USD/CAD was close at its opening level of 1.3160 as of 00:50 GMT today. At the same time, CAD/JPY dropped from 91.92 to 91.75. The euro rallied from 1.4492 to 1.4542 yesterday and remained near that level today.
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