Canadian Dollar Declines Against US Peer on Weak Crude Oil Prices

The  Canadian dollar today fell against its US counterpart as  investors reacted to  a  drop in  global crude oil prices during today’s session. The  loonie, whose performance is closely linked to  crude oil prices, fell despite the  lack of  much activity around the  greenback as  US markets remain closed.
The  USD/CAD currency pair today rallied from an  Asian session low of  1.3250 to  a  high of  1.3295 in  the  mid-European session as  the  loonie lost ground against the  greenback.
The  loonie fell today as  investors moved on  from the  upbeat Canadian CPI data released by  Statistics Canada on  Friday, which surpassed expectations triggering a  rally by  the  loonie. The  markets today were largely driven by  negative investor sentiment towards the  loonie due to  the  slight pullback in  global crude oil prices as  tracked by  the  West Texas Intermediate. The  WTI today declined by  more than 0.5% to  hit a  low of  53.33, which drove the  loonie lower. Investors chose to  ignore the  fact that US markets would be closed today as  the  country celebrates Martin Luther King Jr. Day.
The  drop in  the  greenback’s strength as  tracked by  the  US Dollar Index, which hit a  low of  96.20, had a  minimal impact on  the  currency pair. The  slight gain in  US Treasury yields could have been responsible for  the  greenback’s gains against the  loonie.
The  currency pair’s future performance is likely to  be affected by  global crude oil prices and  geopolitical events.
The  USD/CAD currency pair was trading at  1.3293 as  at  11:39 GMT having rallied from a  low of  1.3250. The  CAD/JPY currency pair was trading at  82.43 having fallen from a  high of  82.73.

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