Canadian Dollar Attempts to Rally Following Rising Prices for Crude

The Canadian dollar attempted to rally against its major rivals today. While the currency managed to log gains against most of them, the rally was limited, and the loonie was unable to outperform the extremely strong Swiss franc.
The Canadian currency gained after the news that Iran shot a US drone. While usually geopolitical tensions and resulting risk aversion hurt the loonie, the event was beneficial for crude oil, and by the same token for the Canadian dollar.
The negative factor for the currency was employment data from Automatic Data Processing. It showed that Canadian employment contracted by 16,000 jobs in May. Furthermore, the April increase got a huge negative revision from 61,700 to 24,000.
Tomorrow, Statistics Canada will release a report on retail sales. Analysts predicted that it will show a significantly slower growth of just 0.3% in April compared to the March’s increase of 1.1%.
USD/CAD was down from 1.3279 to 1.3208 as of 15:58 GMT today, touching the low of 1.3150 intraday. EUR/CAD traded at 1.4900 after opening at 1.4908 and falling to the session minimum of 1.4862. At the same time, CAD/CHF plunged from 0.7484 to 0.7435.

If you have any questions, comments, or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

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