The Canadian dollar fell during the current trading session, yet again following the moves of crude oil. Today, crude went down, and so did the currency. Nevertheless, the loonie managed to outperform the yen, which tumbled even harder.
Prices for oil declined due to concerns about oversupply on the market. Output from the Organization of Petroleum Exporting Countries hit the 8-year high. The number of US oil rigs reported by Baker Hughes increased by 10 last week.
The news about a new Prime Minister in the United Kingdom improved the market sentiment somewhat, meaning that the loonie may yet bounce. For now, though, the Canadian dollar is soft. Other commodity currencies were falling as well, and that is a bit strange as most metals were rallying and should have helped commodity-related assets.
USD/CAD went up from 1.3042 to 1.3121 as of 18:23 GMT today, trading near the highest level since June 2. EUR/CAD gained from 1.4410 to 1.4508. Meanwhile, CAD/JPY climbed 1.6% from 77.10 to 78.33.
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