USD/CAD is backed by lower oil
USD/CAD spiked yesterday to 1.0578, but failed to close that high. On the H4 chart one can see that the pair’s moving sideways in the 1.0570/20 area.
Canadian dollar weakened as the price of oil, Canada’s biggest export, fell after Iran and world powers reached an interim deal to set limits on its nuclear program. Analysts at Cambridge Mercantile Group point out that in the short term oil is going to trade heavy and CAD will stay under negative pressure. Analysts at Rabobank add, however, that in the medium term, if lower oil prices come through in better growth data that will turn good for CAD as the general risk sentiment improves.
For now SEB Bank points out that USD/CAD may revisit 1.0500 and then turn up towards July high at 1.0608.
Chart. Daily USD/CAD