The Canadian dollar dropped today, tracking decline of crude oil. Signs of slowdown in economies around the world were hurting currencies, especially those tied to growth. Yet the loonie is attempting to bounce right now, and it looks like the currency may pare most of its losses by the end of Friday’s trading.
Crude oil was attempting to hold its position during the current trading session but failed and declined more than percent as of now. It is bad news for the Canadian dollar as its performance strongly correlates to that of crude. Oil declined as poor economic data from China, as well as from Europe and the United States, promised lower demand for the commodity.
Yet with all the negative factors, the Canadian dollar has been able to reverse its movement, heading back to the opening level against major rivals and actually reaching it versus the euro. It is important to remember, though, that fundamentally the currency remains very vulnerable due to the collapse of oil prices and the easing stance of Canada’s central bank.
USD/CAD was at 1.3039 as of 19:59 GMT after rallying from 1.3035 to 1.3102 earlier, reaching the highest level in more than a decade. CAD/JPY bounced to 94.96 following the drop from 95.01 to 94.47. EUR/CAD traded near its opening level of 1.4318 after touching the daily high of 1.4379 — the strongest rate since February 2.
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