Oil Drops, Stalling Loonie’s Rally

Oil prices are dropping today, stalling the rally the Canadian dollar has been seeing in recent days. Yesterday, the loonie reached the 79-cent mark against the US dollar, and some think that Canadian dollar could breach 80 cents in the coming weeks.

Canadian dollar is a little lower today against its major counterparts as oil prices fall. Earlier this week, crude oil had been on the rise as a strike in Kuwait caused supply fears. Now, though, the strike is over and production glut is still an issue, and oil prices are down again.
Loonie has been swinging a little bit along with oil prices, which can’t seem to settle down as every bit of news is changing the direction of oil. However, there is speculation that the Canadian dollar will start inching higher.
With some consolidation to come, there is a chance that the loonie will rise to the 80-cent mark against the greenback. The Canadian dollar already touched 79 cents for the first time since summer 2015, and there are expectations for some better performance.
At 13:44 GMT USD/CAD is up to 1.2673 from the open at 1.2670. EUR/CAD is up to 1.4392 from the open at 1.4390. GBP/CAD is also higher, gaining to 1.8246 from the open at 1.8244.

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