The Canadian dollar dropped today against its major counterparts, dragged down by falling prices for crude oil. The general risk-negative sentiment on the currency markets added to the weakness of the loonie.
Futures for crude oil lost more than 5 percent of their value during the current trading session as US gasoline inventories demonstrated the biggest gain since 1993. The performance of the Canadian currency strongly correlates with that of crude oil as the commodity is the major source of Canada’s export revenue.
The sentiment on the Forex market currently is not beneficial to currencies associated with risk. With tensions in Middle East and reports about nuclear test in South Korea, market participants feel the need for safe currencies. Alas, the loonie is not one of them.
USD/CAD rallied from 1.3991 to 1.4083 as of 21:28 GMT today, trading near the highest level since 2003. EUR/CAD advanced from 1.5036 to 1.5188. Meanwhile, CAD/JPY went down from 85.04 to 84.10, close to the lowest rate since December 2012.
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