The Canadian Dollar traded at almost a four-month low against its U.S. counterpart as the price of crude oil, the nation’s biggest export, fluctuated.
Futures of crude oil fell 0.6 percent to $93.56 per barrel in New York after gaining as much as 0.6 percent. The commodity fell 0.8 percent yesterday after Iran and world powers reached an interim deal to set limits on its nuclear program. The Canadian dollar has dropped 5.7 percent this year against the greenback as the Bank of Canada Governor Stephen Poloz signaled he might need to cut interest rates to boost the economy, while the U.S. Federal Reserve plans to reduce its pace of bond buying.
“You’ll see the loonie react to news of the day, but the loonie is on its down trend,” David Doyle, a strategist at Macquarie Capital Markets, said by phone from Toronto. “That’s simply because the U.S. economy should outperform the Canadian economy over the next year or so.”
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015