Canadian Dollar weakens on Oil price slump as markets eye data releases
- The Canadian Dollar weakens as a sharp decline in Oil prices weighs on the commodity-linked currency.
- Hopes for renewed negotiations between the United States and Iran ease concerns over potential supply disruptions.
- Investors now turn their attention to a busy week of economic data, including employment reports.
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. Improving hopes for a diplomatic solution between the United States (US) and Iran reduce concerns over disruptions to global crude supply, weighing on the Canadian currency.
Oil prices fall after US President Donald Trump announced over the weekend that planned military strikes against Iran had been cancelled and that new negotiations with Tehran are expected to begin on Monday. Although Iranian Foreign Ministry spokesperson Esmaeil Baghaei stated that no talks are currently taking place with Washington, the prospect of renewed diplomacy has eased supply concerns and pushed crude prices sharply lower. Canada is a major Oil exporter, meaning weaker Oil prices generally weigh on the Loonie.
At the same time, gains in USD/CAD remain limited by the wait-and-see tone of the US Dollar (USD). Investors now shift their focus to a series of key US economic releases this week. The Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) is due later on Monday, followed by the Job Openings and Labor Turnover Survey (JOLTS) report, the ADP Employment Change report and Friday's Nonfarm Payrolls (NFP). Canada will also publish its employment report on Friday, with both releases likely to provide some volatility for the USD/CAD pair.
Canadian Dollar Price Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.03% | 0.12% | -0.58% | 0.14% | 0.39% | 0.15% | 0.22% | |
| EUR | 0.03% | 0.14% | -0.60% | 0.16% | 0.40% | 0.20% | 0.20% | |
| GBP | -0.12% | -0.14% | -0.70% | -0.03% | 0.27% | 0.07% | 0.08% | |
| JPY | 0.58% | 0.60% | 0.70% | 0.66% | 0.89% | 0.71% | 0.68% | |
| CAD | -0.14% | -0.16% | 0.03% | -0.66% | 0.25% | 0.06% | 0.02% | |
| AUD | -0.39% | -0.40% | -0.27% | -0.89% | -0.25% | -0.21% | -0.18% | |
| NZD | -0.15% | -0.20% | -0.07% | -0.71% | -0.06% | 0.21% | 0.02% | |
| CHF | -0.22% | -0.20% | -0.08% | -0.68% | -0.02% | 0.18% | -0.02% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Author
Ghiles Guezout
FXStreet
Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.
