The Canadian dollar traded flat-to-lower against its major rivals today following the decline of crude oil prices. For the week, though, the currency was heading to strong gains.
Crude oil declined on Friday as the number of US oil rigs increased. The Canadian currency often follows moves of crude as the commodity is the major component of Canada’s trade revenue.
Talking about trade, concerns about trade wars between the United States and their allies diminished after the positive outcome of the meeting between US President Donald Trump and European Commission President Jean-Claude Juncker in Washington. Traders hope that means the USA are ready to make a compromise, which bodes well for the NAFTA negotiations. Indeed, Treasury Secretary Steven Mnuchin told CNBC yesterday:
We hope to have an agreement in principle, clearly, very soon. That’s the first priority. I think we’re making a lot of progress.
USD/CAD traded at about 1.3064 as of 19:40 GMT today after opening at 1.3068 and falling to the daily low of 1.3041. EUR/CAD ticked up from 1.5215 to 1.5231, bouncing from the session low of 1.5173. CAD/JPY slipped from 85.05 to 84.95.
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