The Canadian dollar was demonstrating a poor performance during the Monday’s trading session. It is hard to be surprised by this turn of events considering the noticeable decline of prices for crude oil.
Futures for both Brent and WTI crude declined more than 1% intraday. While currently prices trimmed their losses a bit, they remain far below the opening level, hurting commodities tied to the performance of crude. So happens, the Canadian dollar is one of such currencies.
Adding to the woes of the loonie was the outlook for monetary tightening from the Federal Reserve. Fed officials were criticizing markets for dismissing the possibility of an interest rate hike in June too easily. Market participants remain skeptical about prospects for the June hike, but that does not mean that the dovish comments are not weighing on rivals of the US dollar.
USD/CAD edged up a little from 1.3117 to 1.3135 as of 18:55 GMT today, reaching the high of 1.3173 intraday. EUR/CAD gained from 1.4696 to 1.4736. CAD/JPY slid from 83.98 to 83.12.
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