Crude oil continued to rise over the Friday’s trading session, meaning that the Canadian dollar was rising as well. The loonie tends to show a strong correlation to moves of crude oil prices, and the correlation was especially noticeable during the recent time.
Crude continued to rise on speculations that Saudi Arabia and Russia would be able to reach an agreement to cut output, supporting prices. Additionally, the number of US oil rigs declined this week according to data provided by Baker Hughes. While oil trimmed its gains, it was still trading above the opening level and heading to weekly gains.
The Canadian dollar was especially strong against other weak currencies like the euro and the Japanese yen. At the same time, the loonie was unable to gain on the US dollar, which was also very strong today. The Dollar Index, tracking performance of the greenback against a basket of six major currencies, gained about 1 percent during Friday’s trading.
USD/CAD traded near its opening level of 1.4027 as of 20:50 GMT today after rising to 1.4108 intraday. EUR/CAD slid 1 percent from 1.5344 to 1.5192. CAD/JPY rallied from 84.69 to 86.31, trading near the highest level since January 4.
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