Canadian Dollar Recovers After Wednesday’s Steep Decline

The Canadian dollar recovered today following yesterday’s steep decline, though the currency was still heading to weekly losses against most of its majors.

Yesterday, Bank of Canada Governor Stephen Poloz delivered a speech about future monetary policy. He sounded rather cautious, and analysts considered the cautiousness to be a sign that the central bank is not going to continue raising interest rates in the foreseeable future. That strongly hurt the Canadian currency.

Yet today, the loonie performed relatively well. Market experts attributed the good performance to the rally of crude oil. It is true that the commodity was heading to weekly, monthly, and quarterly gains. But as for the current trading session specifically, crude actually logged losses, though it has trimmed them by now.

USD/CAD fell from 1.2475 to 1.2425 as of 18:58 GMT today. EUR/CAD was up from 1.4651 to 1.4709 intraday but went back to opening level by now. CAD/CHF ticked up from 0.7788 to 0.7804.

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