USD/CAD Stays Above 1.2450 As WTI Continues Its Rally
The Canadian Dollar has been performing excellently in recent days thanks to the crude oil rally, and it has gained further ground against the greenback as the black gold continues its positive performance.
Loonie Rallies Following A Surge In Oil Prices
The Canadian Dollar has been one of the best-performing currencies in recent days. The excellent run by crude oil, Canada’s major export product, has done wonders for the Loonie. It continued its excellent performance against the greenback as the WTI stayed around the $80 mark.
The USD/CAD pair spent this morning fluctuating in a tight range. However, it started to drop lower prior to the American session, with the Loonie gathering strength thanks to the rising crude oil prices.
At the time of writing, the USD/CAD pair is down by 0.02% over the past few hours and is now trading at 1.2462. The greenback managed a pullback earlier today, but the Loonie continues to lead the way.
The greenback’s pullback was also due to the WTI, with the US oil resuming its upward movement earlier today. The US Dollar hasn’t performed well in recent trading sessions, with last week’s poor NFP data and other economic events affecting the currency’s performance.
At the moment, investors will be keeping an eye on the oil price action seeking fresh trading opportunities in the resource-linked Loonie. The inflation data from the United States tomorrow will play a role in determining how investors will view the USD/CAD pair over the coming hours.
USD/CAD Could Drop Below 1.2450
A look at the USD/CAD four-hour chart indicates that the pair is currently in a bearish situation. If the current market condition persists, then the pair could drop below the 1.2450 over the next few hours.
The Loonie has been gathering momentum and could open its lead against the greenback even further in the coming hours and trading sessions. The US inflation data and the oil prices would play crucial roles in how the pair perform in the coming session.