Canadian Dollar weakens on Oil price slump as markets eye data releases
USD/CAD trades around 1.4040 on Monday at the time of writing, up 0.14% on the day as the Canadian Dollar (CAD) comes under pressure following a sharp decline in Oil prices.
On Monday, the Canadian Dollar (CAD) weakened against the US Dollar (USD) as Oil prices continued to plummet. The Loonie traded around 1.4040, marking a 0.14% increase for the day. This decline in Oil prices followed the US President Donald Trump's announcement that military strikes against Iran had been postponed, and negotiations with Tehran were set to commence on Monday.
However, Iran's Foreign Ministry spokesperson, Esmaeil Baghaei, maintained that no talks were taking place with Washington, which alleviated concerns about potential disruptions in global crude supply. As Canada is a significant Oil exporter, weaker Oil prices typically put downward pressure on the Canadian Dollar. Despite this, the movement in USD/CAD was constrained by the cautious stance of investors towards upcoming US economic data releases.
Key indicators such as the Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI), Job Openings and Labor Turnover Survey (JOLTS), ADP Employment Change report, and Friday's Nonfarm Payrolls (NFP) are all expected to bring volatility to the USD/CAD pair. Furthermore, Canada's employment report, released on Friday, is also anticipated to contribute to market fluctuations for the Canadian Dollar.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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