The Canadian dollar climbed against its US peer but dropped against the euro and the Japanese yen despite the support from rising oil prices and manufacturing sales.
Prices for crude oil, Canada’s major export, rallied during the Tuesday’s session, helping the loonie (as the Canadian currency is nicknamed) in the process. Market analysts are worried, though, that unless crude continues go higher the currency will have hard times keeping gains. Also helping the Canadian dollar were manufacturing sales, which rose 0.8% in June.
With all the positive fundamentals, the US dollar was the only major currency against which the loonie was able to rally. The greenback was hurt by the absence of inflation, which prompted talks that the Federal Reserve is going to delay its interest rate hike.
USD/CAD dropped from 1.2922 to 1.2862 as of 23:33 GMT today, and its session minimum of 1.2805 was the lowest since June 24, when the greenback surged after the Brexit announcement. At the same time, EUR/CAD rose from 1.4419 to 1.4500 while CAD/JPY declined from 78.32 to 77.96, touching the low of 77.59 intraday.
If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.
