Canadian Dollar underperforms as Oil prices correct significantly
The Canadian Dollar (CAD) underperforms its major currency peers on Friday. The North American currency faces selling pressure as Oil prices have retreated sharply after posting a fresh four-month high.
The Canadian Dollar (CAD) struggled to keep pace with major global currencies on Friday. Market sentiment turned sour as Oil prices tumbled, falling more than 4% to approach $96.50 following a fresh four-month peak. This sharp decline in Oil prices appears to be driven by profit-taking, exacerbated by the ongoing trade tension between the United States (US) and Iran.
In contrast, the US Dollar (USD) experienced a minor uptick, trading at 0.1% above 1.3846, marking its third consecutive day of gains. The primary catalyst for the USD/CAD pair will be the upcoming US Consumer Price Index (CPI) data for August, released on Monday. Traders will also be closely monitoring the US CPI report for insights into the Federal Reserve's (Fed) expectations regarding future interest rate hikes.
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