Canadian Dollar outperforms its peers amid rallying oil prices
The Canadian Dollar (CAD) trades higher against its major currency peers, with USD/CAD sliding 0.26% to near 1.4160 during the European trading session on Wednesday. The CAD jumps as oil prices rally, following remarks from United States (US) President Donald Trump that the Memorandum of Understanding (MoU) with Iran is over.
In European trade, the WTI Oil price is up over 2.23% to near $73.6, and is up over 7% so far this week. Higher oil prices improve the appeal of currencies from economies that are net oil exporters.
Going forward, the major trigger for the Canadian Dollar will be the labor market data for June, which will be released on Friday. The data is expected to show that the economy created 10K fresh jobs, significantly lower than 87.8K in May.
Broadly, surging oil prices have increased the appeal of safe-haven assets. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades almost flat around 101.00 after recovering early losses.
Meanwhile, investors await the Federal Open Market Committee (FOMC) minutes of the June policy meeting, which will be published at 18:00 GMT. Market participants will pay close attention to the FOMC minutes to get fresh cues regarding the Federal Reserve’s (Fed) monetary policy outlook.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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