Canadian Dollar Fails to Rally, Erases Gains vs. Greenback

The Canadian dollar attempted to rally today but failed and has trimmed its gains by now. Against the US dollar, the loonie erased gains outright as the greenback was too strong during the current trading session.

Canada’s trade balance deficit shrank to C$1.5 billion in October from C$3.4 billion in September. That was a smaller gap than the forecast C$2.3 billion.

Yet the loonie could not outperform the greenback, which was very strong today despite all of US economic reports released over the current session were worse than expectations. Apparently, traders remained very optimistic about the planned US tax reform.

Even the fact that prices for crude oil rose today could not help the Canadian currency.

USD/CAD traded at 1.2696 as of 21:00 GMT today after opening at 1.2672 and falling to the daily low of 1.2623. EUR/CAD opened at 1.5036, dropped to 1.4946, and bounced to 1.5010 later. CAD/JPY was up from 88.67 to 89.21.

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