Falling Canadian Dollar Gets Help from Crude Oil

The Canadian dollar was falling on Wednesday due to domestic macroeconomic data and the general negative sentiment among Forex market participants. The currency managed to rebound with the help of rising prices for crude oil, though, and is trading not far from the opening level at the start of Thursday’s session.
Canada’s trade balance logged a deficit of C$3.3 billion in May. While it was basically unchanged from the April’s level, the reading was worse than C$2.6 billion predicted by analysts. The worse-than-expected data added to the pressure on the loonie caused by fears of the Brexit and its impact on the global economy.
The currency managed to pare losses with the help of crude oil rally. The performance of the loonie is strongly correlated with moves of crude as the commodity is Canada’s major import and has a great impact on the nation’s economy.
USD/CAD traded near the opening level of 1.2960 as of 00:36 GMT today. EUR/CAD was at about 1.4372 after opening at 1.4385. CAD/JPY ticked down from 78.16 to 77.96 but was far from yesterday’s low of 77.02.

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