USD/CAD Falls to 3-Week Lows on Oil Price Rally

The USD/CAD currency pair today fell to new 3-week lows as the Canadian dollar rallied against its US counterpart boosted by a rally in global oil prices. The release of US consumer confidence index for December also contributed to the currency pair’s decline as it did not meet expectations.

The USD/CAD currency pair fell by about 70 points from a daily high of 1.2695 hit during the Asian session to a low of 1.2625 in the early American session.

The currency pair declined to lows last witnessed on December 5 due to the rally in global oil prices as tracked by the West Texas Intermediate. The WTI hit a high of $60 for the first time today since mid-2015, which caused the commodity-linked loonie to rally against the greenback. The US dollar had suffered losses against its main peers earlier in the session as tracked by the US Dollar Index, which hit a low of 92.96 today.

The release of the Conference Board‘s consumer confidence index, which missed expectations by coming in at 122.1 as opposed to the expected 128, also contributed to the pair’s decline. The US pending home sales data released by the National Association of Realtors came in at 0.6% on an annualized basis in November as compared to the previous 1.2%.

The currency pair’s future performance is likely to be affected by global oil prices and the release of US advance goods trade balance tomorrow.

The USD/CAD currency pair was trading at 1.2655 as at 16:14 GMT having recovered slightly from a daily low of 1.2625. The CAD/JPY currency pair was trading at 89.54 having rallied from a low of 89.18.

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