Canadian Dollar Gains Against US Dollar on Strong Oil Prices

The Canadian dollar was largely stronger against the US dollar for most of today’s session boosted by a rally in global oil prices as tracked by the West Texas Intermediate. The release of the US ADP employment change report boosted the USD/CAD currency pair slightly higher, but the loonie rallied again to erase most of the pair’s gains.

The USD/CAD currency pair today traded within a 43-point range by hitting a daily high of 1.2910 and a low of 1.2867, as at the time of writing.

The rebound in global oil prices as tracked by the WTI, which hit daily highs above $55/bbl, boosted the commodity-linked loonie for most of today’s session. Other releases from the Canadian docket such as the IHS Markit Canada Manufacturing PMI, which came in at 54.3, much lower than the previous 55.0 encouraged the neutral tone around the pair. The release of the MLI leading indicator also had minimal impact on the pair.

The release of the US ADP employment change data lifted the greenback causing the pair to rally higher. The ADP recorded 235,000 new jobs beating the market expectation of 200,000 jobs. Other releases from the US docket such as the ISM Manufacturing report and ISM Employment data had minimal impact on the pair, as the loonie gained against the greenback.

The currency pair’s short-term performance is likely to be influenced by the FOMC rate decision scheduled for 18:00 GMT, as well as BoC Governor, Stephen Poloz‘s testimony before the senate.

The USD/CAD currency pair was trading at 1.2886 as at 15:06 GMT having dropped from a high of 1.1910 hit earlier today. The CAD/JPY currency pair was trading at 88.41 having rallied from a low of 88.11 hit at the beginning of today’s session.

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