The Canadian dollar gained against its most-traded rivals over the week with the help of crude oil rally caused by the surprise announcement from the Organization of Petroleum Exporting Countries.
The OPEC made an announcement that it is going to cut its oil production in order to support prices that remain under pressure from concerns about oversupply. The announcement surprised traders as they were not expecting from the members of the organization to come to any agreement. While the optimism caused by the deal has started to fade rather quickly, the Canadian currency managed to stay above this week’s opening level for most part. The better-than-expected GDP report helped the loonie in keeping its gains.
Before that, the currency was soft due to concerns about the outcome of the US presidential elections. There are worries that US trade with its partners may be disrupted if Donald Trump wins the presidency.
The euro managed to end the week almost flat versus the Canadian dollar thanks to receding fears about the fate of Germany’s biggest bank — Deutsche Bank.
USD/CAD slipped from 1.3157 to 1.3124. EUR/CAD ended the week at 1.4748 after opening at 11.4767. CAD/JPY advanced from 76.69 to 77.20 following the drop to the weekly low of 75.38 — the lowest level since June 2012.
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