Canadian Dollar Crashes Against US Peer on Falling Crude Oil Prices

The  Canadian dollar today fell against its US peer as  global crude oil prices fell to  new lows as  Saudi Arabia plans to  up production as  the  oil price war heats up. The  USD/CAD currency pair rallied to  the  1.4400 high that was last seen in  2016 as  demand for  the  greenback soared driven by  the  dominant risk-off market sentiment.
The  USD/CAD currency pair today rallied from a  low of  1.4166 in  the  Asian session to  a  high of  1.4467 in  the  early American session and  was headed higher at  the  time of  writing.
The  currency pair’s rally was largely fueled by  the  massive drop in  global crude oil prices as  tracked by  the  West Texas Intermediate, which fell to  a  low of  23.57 earlier today. Investors are worried that Saudi Arabia will hike its crude oil production to  12.3 million barrels per day amid weakening global demand for  the  commodity. Investors were also worried about the  potential impact of  the  coronavirus pandemic on  Canada’s oil exports. Two provinces have already declared a  state of  emergency to  combat the  spread of  the  COVID-19 coronavirus.
The  currency pair had a  muted reaction to  the  release of  Canada’s consumer price index report for  February by  Statistics Canada. According to  the  report, Canada’s core inflation print came in  at  an  annualised 1.8% beating consensus estimates set at  1.7%.
The  loonie’s future performance is likely to  be affected by  speeches from Canada’s Prime Minister Justin Trudeau and  Bank of  Canada Governor Stephen Poloz scheduled for  14:30 GMT.
The  USD/CAD currency pair was trading at  1.4455 as  at  13:48 GMT having risen from a  low of  1.4166. The  CAD/JPY currency pair was trading at  74.,70 having fallen from a  high of  75.68.

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