Canadian Dollar Mostly Flat amid Battling Fundamentals

The Canadian dollar was mostly flat against its major rivals (though not versus the Japanese yen) as good and bad fundamentals battled for the right to determine the direction for the currency to move.

High chances for an interest rate hike from the Federal Reserve in December (which now stands at 78% according to CME FedWatch) make most currencies soft against the US dollar. The dovish stance of Canada’s central bank makes the loonie vulnerable against other peers as well.

Yet there was good news for the Canadian currency. The rally of crude oil prices buoyed the loonie during Thursday’s trading. The breakthrough in the free trade deal between Canada and the European Union was also a good sign, allowing Canada to diversify its export destinations.

USD/CAD traded at 1.3390 as of 22:08 GMT today, near the opening level of 1.3380. EUR/CAD also did not move far from the opening of 1.4591. While most CAD-crosses were flat, CAD/JPY managed to log a rally, rising from 78.05 to 78.57.

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