The Canadian dollar today fell against its US counterpart as investors reacted to a drop in global crude oil prices during today’s session. The loonie, whose performance is closely linked to crude oil prices, fell despite the lack of much activity around the greenback as US markets remain closed.
The USD/CAD currency pair today rallied from an Asian session low of 1.3250 to a high of 1.3295 in the mid-European session as the loonie lost ground against the greenback.
The loonie fell today as investors moved on from the upbeat Canadian CPI data released by Statistics Canada on Friday, which surpassed expectations triggering a rally by the loonie. The markets today were largely driven by negative investor sentiment towards the loonie due to the slight pullback in global crude oil prices as tracked by the West Texas Intermediate. The WTI today declined by more than 0.5% to hit a low of 53.33, which drove the loonie lower. Investors chose to ignore the fact that US markets would be closed today as the country celebrates Martin Luther King Jr. Day.
The drop in the greenback’s strength as tracked by the US Dollar Index, which hit a low of 96.20, had a minimal impact on the currency pair. The slight gain in US Treasury yields could have been responsible for the greenback’s gains against the loonie.
The currency pair’s future performance is likely to be affected by global crude oil prices and geopolitical events.
The USD/CAD currency pair was trading at 1.3293 as at 11:39 GMT having rallied from a low of 1.3250. The CAD/JPY currency pair was trading at 82.43 having fallen from a high of 82.73.
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