USD to CAD Fell on Oil Prices, But GDP data Provided Some Strength

The Canadian dollar exchange rate generated losses in the last week, settling just below the 1.34 line, which is its lowest weekly close since March.  Falling crude oil prices, gloomy economic reports from Canada and a strengthening U.S. dollar exchange were the key drivers behind the selloff in CAD conversion rate last week.

In the US, durable goods orders were mixed. Advance GDP beat expectations at 2.9%, but the internals were mixed. UoM Consumer Sentiment dropped to its lowest level since September 2015 and missed expectations.

Crude oil prices are falling significantly over the last week amid traders concerns over the production deal and potential growth in U.S. production. Crude oil prices have wiped off almost all gains it has generated after OPEC September 27 meeting. Crude oil prices are currently standing at the lowest level of one month. Prices are likely to fall further as the American Petroleum Institute predicted an expected build in U.S. crude oil inventories.

CAD currency rate to USD is heavily dependent on crude oil prices, as Canada is also among the major crude oil producers.

However, Loonie to USD currency rate gained some momentum since the start of this week following the news that Democratic presidential candidate Hillary Clinton faces a new FBI inquiry over her use of a private email server while she served as the US Secretary of State. CAD to USD exchange rate also gained upsurge after Canadian GDP came in line with analysts’ consensus.

USD/CAD pair has posted slight gains on Tuesday. In the North American session, the USD to CAD converter rate was trading at 1.3390, as Canada’s GDP surge 0.2%, matching the estimate. Though The 0.2% gain in August was considerably softer than the 0.5% gain in July, but the markets appear relieved that the economy continues to expand.