CAD Gains on USD, Other Majors as Oil Prices Stabilize

The Canadian dollar rallied against its major peers (including the US dollar, which itself was strong) during the current trading session after prices for crude oil stabilized following the initial sell-off. With that said, the loonie failed to beat the very firm Japanese yen.

The Organization of Petroleum Exporting Countries announced yesterday that it and some other major oil producers are extending oil productions cuts. Initially, the announcement caused prices for crude to plummet as market participants were disappointed that the OPEC did not announce deeper cuts. Yet currently, prices stabilized, helping commodity currencies, especially those of oil-producing countries.

As a result, the loonie was strong enough to beat the firm greenback. The US currency got help from the positive revision to US gross domestic product, but apparently that was not enough to outperform the Canadian currency.

USD/CAD dropped from 1.3483 to 1.3452 as of 15:28 GMT today. EUR/CAD declined from 1.5113 to 1.5044. CAD/JPY fell from 82.91 to 82.69 but rebounded from the daily low of 82.36.

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