Canadian Dollar Drops, Following Crude Oil

The Canadian dollar fell on Monday, following the sharp decline of North American crude oil. The week ahead have several important events in store for the currency, especially on Friday.

The loonie dropped as North American crude oil lost more than 1% of its value on Friday. One of the reasons for the drop was news about reopening of the Keystone Pipeline, which brings crude from Canadian oilfields to US refineries. Oil is the major export commodity for Canada, therefore it usually has a big impact on performance of the Canadian dollar.

A couple of important economic reports are scheduled for Friday. One of them is employment data, which for several months had a tendency to be positive in one month and disappointing in the next. The previous month had a positive surprise, meaning that this month’s data should be bad if the trend continues. Even more important will be gross domestic product, which unexpectedly fell in August. If the report for September shows a decline as well, that would mean the Canadian economy has slipped into a technical recession.

USD/CAD rallied from 1.2705 to 1.2758 as of 23:56 GMT today. EUR/CAD advanced from 1.5152 to 1.5186. CAD/JPY declined from 87.68 to 87.09.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *