The Canadian dollar fell during the Tuesday’s trading session, tracking the decline of crude oil prices. Positive domestic macroeconomic data was unable to help Canada’s currency.
Crude oil fell on Tuesday amid persisting concerns about oversupply on the market. As crude is Canada’s biggest export, the loonie usually closely follows moves of the commodity.
As for Canadian economic data, it was good with wholesale sales rising 1.0% in April. That was two times the forecast growth by 0.5%.
The currency did not respond to the favorable report, most likely due to the drop of crude oil. Analysts also argued that the currency spent its strength in the long rally that it had started after the release of impressive employment data. Indeed, the loonie rose for eight consecutive sessions against the Swiss franc before falling.
USD/CAD rose from 1.3217 to 1.3270 as of 23:20 GMT today. EUR/CAD was up from 1.4734 to 1.4821 before trading at 1.4774. CAD/CHF declined from 0.7377 to 0.7343, and its daily low was at 0.7321.
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