Canadian Dollar remains subdued near two-month lows as falling oil prices weigh
USD/CAD continues its winning streak for the eighth consecutive day, trading around 1.4200 during Asian hours on Wednesday. The currency pair remains positioned near two-month highs as the commodity-linked Canadian Dollar (CAD) faces headwinds from falling crude oil prices.
The Canadian Dollar (CAD) continues to struggle near two-month lows on Wednesday, as falling oil prices cast a shadow on the energy-dependent currency. The USD/CAD pair sits at around 1.4200, edging closer to two-month highs as the Canadian Dollar battles the effects of declining crude oil prices. Supply from Middle Eastern exports picked up, with Middle Eastern crude exports reaching a level close to pre-war output.
This provided some relief, but the downward pressure on oil prices intensified following supply relief measures and inventory gains in the United States. Meanwhile, the US Dollar gained strength, as market expectations of further Federal Reserve rate hikes bolstered its position. Analysts note that the Canadian economy's rebound slowed in the third quarter, yet preliminary GDP estimates still suggest a modest increase in August.
The Bank of Canada's interest rate decisions, the price of oil, the health of the Canadian economy, inflation, and the trade balance all play a crucial role in determining the value of the Canadian Dollar.
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