Canadian Dollar Reverses Rally, Follows Crude Oil in Decline

After rallying earlier today, the Canadian dollar fell against its most-traded peers, following the slump of crude oil prices.

Prices for crude slumped more than 2% today. There were various reasons for that, including trade war fears and an increase of oil production in Russia. Oil is the major export commodity for Canada, therefore it has a big impact on performance of the Canadian currency.

The IHS Markit Canada Manufacturing PMI logged a reading of 55.7 in March, almost unchanged from 55.6 in February and above the neutral 50.0 level. Released last week, Canada’s gross domestic product showed a drop by 0.1% in January instead of an increase at the same rate as analysts had predicted. Now, traders wait for the trade balance on Thursday and employment data on Friday.

USD/CAD rallied from 1.2898 to 1.2942 as of 18:42 GMT today after dipping to 1.2862 intraday. EUR/CAD advanced from 1.5880 to 1.5923. CAD/JPY opened at 82.33, touched the daily high of 82.68, but pulled back to 81.73 later.

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