Home›Forex›Major Pairs›Canadian dollar extends losses versus US dollar as oil…

Canadian dollar extends losses versus US dollar as oil falls

USD/CAD held just below two week highs near 1.1411, while Brent and WTI dropped sharply and the Fed’s Thursday decision remained the main catalyst for the next move.

Reported · Written up by our desk · Major Pairs

The Canadian dollar stayed under pressure for a second straight session against the US dollar, with USD/CAD trading just below two week highs around 1.1411, FXStreet reported.

The move was driven by weakness in oil prices, which tends to hurt the loonie because crude is a key Canadian export, FXStreet said, noting Brent slipped to around $85.00 and WTI to roughly $82.00 after falling more than $10 from last week’s highs.

FXStreet also linked the dollar’s relative softness to improved risk sentiment after the US and Iran halted hostilities, which triggered a mild relief rally, but said the Canadian currency lagged most other major peers.

Attention is now turning to the US Federal Reserve’s monetary policy meeting due Thursday, with markets pricing nearly a 33.0% chance of a rate hike and treating a hold as the base case, according to FXStreet, which added that the timing and tone of the statement, plus incoming growth signals such as the Atlanta Fed GDPNow update using June durable goods data, could shape near term USD direction.

Latest closeWTI crude $90.47 ▼1.9%|Brent $98.38 ▼2.3%

More like this

Sources