The Canadian dollar was falling for the most part of Friday’s trading session but reversed its movement as of 14:00 GMT and currently almost erased its losses. The reason for such behavior was the sudden surge of oil prices.
Crude oil were also performing poorly during the current session, dragging oil-related currencies down. Yet prices resumed its rally recently, rescuing the Canadian dollar from the decline. It is hard to say right now what exactly caused such unexpected change of behavior, but the fact remains the same — crude oil rises, taking the loonie along up higher.
It is hard to predict where the Canadian currency will go from here. On one hand, speculations about a delay of monetary tightening from the Federal Reserve should support most currencies against the US dollar. On the other, concerns about global economic growth can hurt the Canadian dollar, which is strongly linked to the wellbeing of the global economy.
USD/CAD was at about 1.3221 as of 15:22 GMT today after opening at 1.3197 and rising to the session high of 1.3300. EUR/CAD traded close to its opening level 1.4833, retreating from the daily high of 1.4987. CAD/JPY was down from 91.66 to 91.54 but bounced from the session minimum of 90.79.
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