The Canadian dollar fell on Thursday after two days of gains and maintained its weakness during the Asian trading hours on Friday.
One of the possible reasons for the decline of the currency was the waning support from the deal to cut oil production announced by the Organization of Petroleum Exporting Countries on Wednesday. The output limit should support oil prices, and that boosted futures for the commodity as well as currencies of oil-exporting countries. Yet now, the rally is waning as traders became skeptical that the agreement will hold.
Positive data from the United States (in particular, the upward revision of US gross domestic product) was another reason for the loonie to fall. And on top of that, uncertainty about the outcome of the US presidential elections continues to weigh on currencies of US trading partners.
USD/CAD rose from 1.3078 to 1.3148 yesterday and traded at 1.3153 as of 1:43 GMT today. EUR/CAD gained from 1.4668 to 1.4748 on Thursday and stayed near that level on Friday. CAD/JPY also stayed near the previous session’s close after slipping from 76.95 to 76.81.
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