Canadian Dollar Plunges Despite Upbeat Retail Sales, Rising Oil Prices

The Canadian dollar today continued to lose ground against its US neighbour driven by the risk-off market sentiment, which favoured the safe-haven greenback. The USD/CAD currency pair rallied higher reversing yesterday’s losses as investors flocked ignored rising oil prices, causing the commodity-linked loonie to fall.
The USD/CAD currency pair today rallied from a low of 1.2728 in the Australian market to a high of 1.2785 in the American session and was near these highs at the time of writing.
The currency pair rallied higher earlier today as the loonie weakened despite rising crude oil prices as tracked by the West Texas Intermediate, which hit a high of 49.16 today. The current uncertainty about the US stimulus package and the Brexit trade talks fueled the pair’s rally as investors flocked to the safe-haven dollar as tracked by the US Dollar Index. The release of Canada’s retail sales report for October could not stop the pair’s rally. According to Statistics Canada, the country’s retail sales rose 0.4% beating analysts expectations set at 0.2%; however, the core print missed expectations.
The loonie’s overall weakness was also related to expectations that the Bank of Canada will take steps to curtail its rise as hinted by the Governor Tiff Macklem earlier this week. The lack of releases from the US docket had minimal impact on the currency pair.
The currency pair’s future performance is likely to be affected by crude oil prices and US dollar dynamics.
The USD/CAD currency pair was trading at 1.2777 as at 17:01 GMT having rallied from a low of 1.2728. The CAD/JPY currency pair was trading at 80.88, having fallen from a high of 81.30.
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Original from: www.earnforex.com