Canadian Dollar Remains Unchanged Even as Oil Prices Move Higher

The Canadian dollar was little changed against the US dollar on Thursday, even as oil prices moved higher.

Following strong gains during yesterday’s session that placed the Canadian dollar at its highest level against the US dollar in three weeks, the Canadian currency struggled to move higher. The US dollar was weaker after the Federal Reserve released its minutes from the Federal Open Market Committee’s meeting on December 13–14.

The minutes revealed that policy makers are uncertain about the future road of the central bank’s monetary policy. A part of the uncertainty stemmed from the lack of clarity toward the exact effect of President-elect Donald Trump’s economic plans on the inflation rate. Trump promised to increase fiscal spending and reduce corporate taxes to stimulate the US economy.

The Canadian dollar failed to gain additional strength today from higher prices for oil, one of Canada’s major exports. Oil prices rose as an agreement to reduce crude production by the Organization of the Petroleum Exporting Countries came into effect.

Traders are now keeping an eye on Canada’s trade report for November and the employment report for December, both of which are due to be published next Friday.

USD/CAD traded at 1.3233 as of 19:10 GMT, after trading at 1.3308 at 10:50 GMT today. USD/CAD opened trading today 1.3314.

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