The Canadian dollar gained against the euro and the Australian dollar today after a report showed that US inventories of crude oil shrank unexpectedly last week. The currency had also rallied against the US dollar but has lost its gains after the Federal Reserve concluded its policy meeting.
The US Energy Information Administration reported today that US oil inventories fell by 4.2 million barrels to 459.7 million. The unexpected draw was a big surprise to most market analysts as they were counting on the reserves to stay almost unchanged. Additionally, Wall Street Journal reported that Saudi Arabia may reduce its oil production. It was another positive news for crude, and by extension to the Canadian economy that depends on oil exports strongly.
The rally of crude oil supported the Canadian dollar but not against its US peer. The greenback was too strong to beat after market participants decided that the Fed’s policy statement was hawkish enough to continue waiting for a September interest rate hike.
USD/CAD was up from 1.2921 to 1.2944 as of 21:01 GMT today after falling to the daily low of 1.2966 initially (the lowest level in two weeks). EUR/CAD declined from 1.4288 to 1.4216. CAD/JPY was little changed at 95.70. AUD/CAD dropped from 0.9475 to 0.9442, and its session low of 0.9409 was the weakest in three weeks.
If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.
