The Canadian dollar dropped on Monday, ignoring positive domestic data, as prices for crude oil retreated. Speculations about monetary tightening from the US Federal Reserve were the main perpetrator in the drop.
Canada’s currency was demonstrating decent performance lately in the wake of a crude oil rally. Yet plenty of analysts were speculating that the rally was unwarranted and should not last long. They did not have to wait long for the upward momentum of oil prices to crumble, and the loonie followed after them to the downside.
This week is relatively light on economic reports, and there was just one indicator released from Canada on Monday. While the report was positive, it was unable to beat the negative impact of crude oil prices. Wholesale sales rose 0.7% in June (the third consecutive monthly increase), exceeding analysts’ expectations.
USD/CAD was up from 1.2892 to 1.2942 as of 23:05 GMT today. EUR/CAD climbed from 1.4566 to 1.4647. CAD/JPY declined from 78.05 to 77.49.
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