The Canadian dollar today broke down against the US dollar as global crude oil prices fell following the absence of more output cuts by the OPEC and its allies at today’s meeting. The USD/CAD rallied higher during the American session as oil prices fell causing the commodity-linked loonie to weaken against the greenback.
The USD/CAD currency pair today rallied from a low of 1.3177 to a high of 1.3217 in the American session and was trading near these highs at the time of writing.
The currency pair traded sideways at the start of today’s session following yesterday’s late pullback. However, the trading range broke in the early American session as the greenback rallied higher as tracked by the US Dollar Index, which hit a high of 99.10 before quickly falling back. The conclusion of the OPEC+ meeting also did not help the loonie as crude oil prices tracked by the West Texas Intermediate fell to a low of 54.00. The release of Canada’s new housing price index for July by Statistics Canada also contributed to the loonie’s overall weakness as the print missed expectations.
The release of the US consumer price index data for August by the Bureau of Labor Statistics also boosted the pair as the monthly print met consensus estimates. The release of the upbeat US initial jobless claims data by the Department of Labor also boosted the pair.
The currency pair’s future performance is likely to be affected by crude oil prices and tomorrow’s US retail sales report.
The USD/CAD currency pair was trading at 1.3197 as at 17:05 GMT having dropped from a high of 1.3217. The CAD/JPY currency pair was trading at 81.91 having recovered from a low of 81.39.
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