The US dollar weakened against the Canadian dollar during Monday’s trading session following a rally in oil prices. Global oil prices rose significantly following the announcement that the meeting between Organization of the Petroleum Exporting Countries and non-OPEC countries was successful.
The non-OPEC countries, led by Russia, agreed to reduce their oil production in light of the global oversupply that had led to depressed oil prices.
The USD/CAD tested new lows as it dropped to 1.31072 on Monday. The Canadian dollar is predicted to gain ground over the dollar even as the announcement of the US Monthly Budget Statement is slated for later in the day.
The decline in the currency pair was mainly triggered by the strengthening of the Canadian dollar. Canada is an oil producer and its currency was bolstered by the higher oil prices.
The currency pair might trade much lower during Tuesday’s session as a result of the announcement of the US monthly budget deficit of -$137 billion on Monday at 19:00 GMT.
The meeting of the Federal Open Market Committee on Wednesday is also likely to affect the currency pair as it might boost the value of the US dollar.
The USD/CAD was trading at 1.31370 at 19:48 GMT while it had hit the 1.31072 level at its lowest point during the day’s session. The currency pair was at 1.31281 as at 22:19 GMT.
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