USD/CAD: Loonie rebounds alongside Oil, cracks 1.45

By FXStreet FXStreet (Mumbai) – The Canadian dollar almost recovered yesterday’s slide against its American counterpart in the late-Asian trades, now pushing USD/CAD to fresh session lows below 1.45 handle.

USD/CAD loses more than 150 pips from 13-yr tops

Currently, the USD/CAD pair drops -0.50% lower at fresh session lows of 1.4488, moving further away from fresh thirteen-year highs printed at 1.4654 on Monday. The USD/CAD pair dropped sharply in Asia, after the Canadian dollar regained lost ground somewhat on the back of a minor recovery seen in both crude benchmarks. Oil is the North American nation’s top export product and Canada is highly dependent on oil exports for its revenues.

At the moment, both crude benchmarks are trying hard to regain footing, with the US oil (WTI) up 0.12% at $ 30.42, while the Brent rises 0.90% to 29 levels, both retreating from their lowest levels since 2003. Oil prices witnessed renewed sell-off on Monday after Western sanctions were lifted on Iran, meaning Iranian oil to flood an already oversupplied oil market.

However, the upside in the loonie is likely to fade soon as markets are pricing-in a BOC rate cut tomorrow in wake of the recent oil price decline, which may further …read more

Source:: FX Street