USD/CAD erases losses as oil tumbles

By FXStreet USD/CAD bottomed at 1.2920, the lowest level in six months but then bounced to the upside, rising back above 1.3000 amid a decline in crude oil prices.

CAD up with data, down with oil

USD/CAD extended the weekly decline earlier after the release of retail sales and inflation data from Canada. Retail sales showed better-than-expected numbers while inflation was slightly below expectations. The loonie rose across the board but the rally was short-lived.

Crude oil prices reversed and dropped from $41.20 (WTI) below $40.00, taking bearish momentum out of the USD/CAD pair.

Recently reached 1.3004 and is now hovering around 1.3000, slightly above yesterday’s closing price but more than 200 pips under the level it had a week ago.

The pair is about to post the ninth weekly decline in a row as it continues to move away from multi-year highs amid an improvement in global markets and a decline in the US dollar.
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Source:: FX Street