The Canadian dollar fell on Monday, following the drop of crude oil prices, though the currency is trying to recover during early Tuesday’s trading.
Crude declined on Monday and continued to move down on Tuesday. Usually, the loonie follows movement of oil prices, but currently it is trying to break the correlation.
The currency may have a hard time recovering from losses due to the market sentiment that is unfavorable to currencies linked to growth and commodities. Concerns about the Brexit took the central stage, driving investors away from riskier assets to seek safety. The CFTC Commitment of Traders report showed that funds cut their long positions on the Canadian dollar.
USD/CAD traded at about 1.2825 as of 2:27 GMT today after rising from 1.2788 to 1.2836 yesterday. EUR/CAD was near 1.4484 following the jump from 1.4381 to 1.4493 on Monday. CAD/JPY slid 1.1% from 83.43 to 82.74 during the previous trading session and is currently trading at 82.70.
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