- The USD / CAD gains almost 100 pips at the beginning of the week.
- The CAD is among the worst performing currencies, as the price of crude oil falls.
The USD / CAD has extended the upward movement during the American session and has risen to 1.3218, reaching the highest level since October 16. At time of writing, the pa remains near the highs around the 1.3215 region.
A drop in WTI weighs on CAD ahead of BoC
The loonie was the worst performer among commodity-related currencies on Monday. The sharp drop in crude oil has affected the CAD. The WTI barrel is under pressure hovering around 38.70, losing almost 3% on the day.
At the same time, USD remains strong across the board amid risk aversion. The Dow Jones falls 2.50% and the Nasdaq falls 1.70%. The US Dollar DXY Index is trading at 93.00, testing Friday’s high. The dollar is gaining even against the yen and despite the decline in US yields.
Market participants ignored US economic data. The negative surprise came from an unexpected drop in new home sales. In Canada, the focus is on the Bank of Canada policy meeting on Wednesday. The meeting “will be designed to fulfill the Hippocratic Oath: First do no harm. As a result, their intention will be to restrict themselves to some adjustments and avoid major changes in the stance of the monetary policy that is working well, in an economy that is not, ”explained the strategists of CIBC
Credits: Forex Street
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