The Canadian dollar today rallied against its US peer benefitting heavily from the latter’s decline as investors remained cautiously optimistic about the global economy. The USD/CAD currency pair fell as the loonie rallied driven by the upbeat investor sentiment as Canada insists that it will not open its borders to Americans given the surge in US coronavirus cases.
The USD/CAD currency pair today fell from a high of 1.3237 in the Asian session to a low of 1.3192 in the early American market mirroring the action in the dollar index.
The currency pair’s decline was mostly fueled by the dollar’s weakness as tracked by the US Dollar Index, instead of the loonie’s strength. The weak American crude oil prices as tracked by the West Texas Intermediate could not have boosted the commodity-linked loonie. The release of Canada’s weak manufacturing sales report for August by Statistica Canada also did not help the pair, and neither did the Canadian portfolio investment figures. News that Canada was shutting its borders to Americans also did not favor the loonie given the importance of the US as a major trading partner to Canada.
The release of the upbeat US retail sales data for September by the Census Bureau gave the currency pair some relief. The retail sales rose 1.9% in September versus consensus estimates of 0.7% growth.
The currency pair’s performance over the upcoming weekend is likely to be influenced by crude oil prices and US dollar dynamics.
The USD/CAD currency was trading at 1.3196 as at 14:19 GMT having crashed from a high of 1.3237. The CAD/JPY currency pair was trading at 79.81, having risen from a low of 79.47.
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