USD/CAD Pair Falls to 6-Week Lows as Loonie Rallies Against Weak Dollar

The Canadian dollar today rallied against the US dollar in a move that was primarily attributed to the greenback’s overall weakness against most of its peers. The USD/CAD currency pair fell to new 6-week lows as the loonie rallied against a much weaker dollar driven by the improved investor risk appetite.
The USD/CAD currency pair today hit a high of 1.3211 in the Asian session before falling to a low of 1.3138 in the American session and was near this level at the time of writing.
The currency pair attempted to rally at the start of today’s session amid falling global crude oil prices as tracked by the West Texas Intermediate, which later hit a low of 52.60. However, the rally did not take off as the greenback lost ground against its European peers, that is the euro and the Sterling pound, which hit new highs. The loonie capitalised on the dollar’s weakness to post gains against its American peer. The release of Canada’s manufacturing shipments data for August by Statistics Canada, which came in at  0.8% beating expectations of 0.6% growth, also boosted the pair. The release of the disappointing Canadian ADP employment change report for September had a muted impact on the pair.
The release of the upbeat US initial jobless claims data by the Department of Labor and the favourable US building permits data for September released by the Census Bureau could not stop the greenback’s fall.
The currency pair future performance is likely to be affected by global oil prices and US dollar dynamics.
The USD/CAD currency pair was trading at 1.3134 as at 14:55 GMT having fallen from a high of 1.3211. The CAD/JPY currency pair was trading at 82.67, having risen from a low of 82.30.

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Original from: www.earnforex.com