USD/CAD Rallies Higher on BoC’s Financial System Review

The USD/CAD currency pair today rallied higher after the release of the Bank of Canada’s Financial System Review. The currency pair was on an uptrend for most of today’s session mainly boosted by the negative sentiment around global oil prices given that the Canadian dollar is a commodity-linked currency.

The USD/CAD currency pair rallied higher by over 70 points from its daily low to hit a high of 1.2824 in the American session.

The release of the Canadian industrial product price for October by Statistics Canada, which beat expectations by coming in at 1.0% instead of the expected 0.5%, could not boost the loonie. The better-than-expected raw materials price index for October also did not lift the loonie. The Canadian dollar was largely weighed down by the weaker global oil prices as tracked by the West Texas Intermediate, which hit a low of 57.42 today. The currency pair retraced some of its gains during a speech by Bank of Canada Governor, Stephen Poloz, where he stated that the bank would keep monitoring the housing market.

The release of the US consumer confidence index for November, which beat expectations, also boosted the greenback. The Conference Board present situation print for November was higher than the market consensus, which boosted the US dollar against the loonie.

The currency pair’s future performance is likely to be affected by global oil prices as well as tomorrow’s release of US GDP data.

The USD/CAD currency pair was trading at 1.2803 as at 17:19 GMT having retraced some of its earlier gains from a high of 1.2824. The CAD/JPY currency pair was trading at 86.81 having dropped from a high of 87.23 earlier today.

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