Canadian Dollar Drops Against US Peer, Recovers on Poloz’s Speech

The  Canadian dollar today lost ground against its US peer as  the  greenback posted gains boosted by  President Donald Trump’s comments about a  strong dollar. The  USD/CAD rallied higher earlier today before giving up all its gains later in  the  session as  the  loonie recovered on  hawkish comments from the  Bank of  Canada Governor.
The  USD/CAD currency pair today rallied to  a  high of  1.4140 in  the  early American session before falling to  trade near its daily low of  1.4068, which was set in  the  European session.
The  currency pair traded sideways earlier today as  the  bulls and  bears fought for  control before rallying higher in  the  mid-European session. The  pair’s rally coincided with the  greenback’s gains as  tracked by  the  US Dollar Index, which hit a  high of  100.56 today. The  loonie’s weakness was also linked to  the  weak global crude oil prices as  tracked by  the  West Texas Intermediate, which has been trading in  a  tight range. Jerome Powell’s dismissal of  negative interest rate in  the  US also boosted the  greenback. The  release of  weak Canadian manufacturing sales data for  March by  Statistics Canada contributed to  the  pair’s rally.
However, the  loonie recovered as  Stephen Poloz, the  Bank of  Canada Governor gave a  speech on  the  Canadian economy and  future expectations. Poloz was confident that the  BoC’s interventions, combined with fiscal policies, had laid a  strong foundation for  Canada’s recovery.
The  pair’s future performance is likely to  be affected by  crude oil prices and  US dollar dynamics.
The  USD/CAD currency pair was trading at  1.4085 as  at  15:54 GMT having fallen from a  high of  1.4140. The  CAD/JPY currency pair was trading at  76.06, having risen from a  low of  75.58.
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