USD/CAD reverses and erases losses despite crude rally

Matías Salord FXStreet

USD/CAD rose almost a hundred pips during the last three hours despite the fact that crude oil prices remain near daily highs, consolidating a gain of more than 7%. The OPEC meeting is over and now officials are giving a press conference.

The pair reversed its trend amid a stronger US dollar and after the agreement in the OPEC to cut oil output. Earlier it bottomed at 1.3355 and has just printed a fresh daily high at 1.3459. It was trading at 1.3445/50, marginally higher for the day. The WTI barrel reached a fresh high at $49.00 and it was up 8.30% for the day so far.

Buy the rumor, sell the fact?

The reverse in the USD/CAD took place even after Canadian GDP surprised to the upside, showing the economy expanded at a 0.3% MoM in September (above the 0.1% expected) and at annualized 3.5% during the July-September period.

The loonie still remains a top performer among commodity currencies. While USD/CAD is unchanged for the day, AUD/USD tumbled to 6-day lows, below 0.7400 and NZD/USD dropped back under 0.7100.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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