Canadian Dollar Rallies on Higher Oil Prices and Mixed US Jobs Data

The Canadian dollar today rallied against the US dollar into the American session primarily driven by the rising oil prices and the greenback’s weakness. The USD/CAD currency pair fell to its daily lows following the release of the mixed US non-farm payrolls report in the early American session before rallying higher.
The USD/CAD currency pair today fell from an opening high of 1.3338 to a daily low of 1.3298 driven by the mixed US jobs data, but later recovered and was trading near its opening price.
The currency pair opened today’s session trading with a bearish bias and got stuck in a sideways range during the Asian session. The pair later fell as crude oil prices rallied as tracked by the West Texas Intermediate, which hit a high of 53.33. The greenback’s weakness as tracked by the US Dollar Index, which hit a low of 98.7 also contributed to the pair’s losses. The release of the mixed US non-farm payrolls data by the Bureau of Labor Statistics drove the pair to its daily lows before it quickly recovered. The release of Canada’s international merchandise trade balance for August also boosted the loonie, thereby contributing to the pair’s decline.
Statistics Canada reported that the country’s trade deficit shrunk to $955 million in August from $1.4 billion in July. The currency pair later rallied higher as the US dollar recovered and oil prices fell, driving the pair higher.
The currency pair’s performance over the upcoming weekend is likely to be affected by crude oil prices and geopolitical events.
The USD/CAD currency pair was trading at 1.3326 as at 16:39 GMT having recovered from a low of 1.3298. The CAD/JPY currency pair was trading at 80.19, having fallen from a high of 80.53.

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