USD/CAD Drops To A Fresh Multi-Month Lows Below 1.2400

The Loonie has been outperforming the greenback since the start of the week, and the pair reached a new multi-month low earlier today.

USD/CAD Drops Below 1.2400

The USD/CAD pair has continued its slide and dropped to its lowest level since July. The pair dropped to 1.2370, a fresh multi-month low during the North American markets after the greenback recorded losses earlier today.

The Loonie has been performing excellently in recent days, thanks to the surge in crude oil prices, Canada’s major export product. At the time of writing, the USD/CAD pair has lost 0.56% of its value and is now trading at 1.2370.

The biggest boost for the Loonie was the WTI crude oil price reclaiming the $81 level. Crude oil prices are trading at levels last seen since 2014, and this has allowed the commodity currencies like the Loonie to perform excellently. Combined with the greenback performing badly against the major currencies, it is clear why the USD/CAD pair has been losing so much in recent sessions.

The decline in the US Treasury bond yields saw the US Dollar Index (DXY) lose 0.15% of its value and now stands at 93.85. The decline in the DXY means that the US Dollar is underperforming compared to some of the other major currencies.

Canada’s Manufacturing Sales Data Pushes The Pair Lower

The USD/CAD dropped even lower today after Canada reported its August manufacturing sales data. The Canadian manufacturing sales data increased by 0.5% on a monthly basis in August. The increase came after Canada recorded a 1.2% decline in July.

Still, the greenback stands a chance to recover some of the losses later today. Investors will have a chance to look at the United States Department of Labor’s weekly Initial Jobless Claims data and September Producer Price Index (PPI) figures with fresh eyes. Favorable data from the two reports could lead to a greenback comeback, and the USD/CAD could rise towards the 1.2400 level again later today.