Canadian Dollar Rallies Against US Dollar on Janet Yellen Speech

The Canadian dollar today rallied higher against its US counterpart after Janet Yellen‘s speech at the Jackson Hole Symposium. The US dollar had earlier rallied from daily lows after the release of the durable goods orders report for the month of July.

The USD/CAD currency pair declined by over 50 points after Yellen’s speech, but had slightly recovered at the time of writing.

The Canadian dollar opened today’s session much stronger than the US dollar as it was boosted by higher global crude oil prices as tracked by the West Texas Intermediate. The currency pair’s initial decline was also facilitated by the weak sentiment surrounding the US dollar after President Donald Trump threatened a government shutdown on Tuesday in order to get funding for building the wall along the Mexican border.

The US dollar rebounded briefly after the release of the durable goods orders report for July by the Census Bureau. Although the overall figures were lower-than-expected, the figures excluding transportation were positive as they came in at 0.5% versus the expected 0.4%. However, Janet Yellen’s speech at the Jackson Hole Symposium dragged the greenback to new lows against the loonie as she did not comment on the Federal Reserve’s future monetary policies.

The currency pair’s future performance is likely to be affected by the action in oil prices after the US Baker Hughes US oil rig count report at 17:00 GMT as well as next week’s Canada quarterly GDP report.

The USD/CAD pair was trading at 1.2497 as at 15:43 GMT having dropped from a high of 1.2544. The CAD/JPY was trading at 87.44 having dropped from a high of 87.76 before the speech.

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