The USD/CAD pair went down by 26 points as the USD further decreased its value, with both gold and oil experiencing an upsurge. The said pair is currently trading at 1.2819, with the CAD continuing its present positive value. The CAD temporarily went over the 78-cent level of the USD as the greenback fell in relation to a lot of currencies as oil prices continued to rise.
One of the reasons for the CAD’s recent gains is the sudden upsurge in oil futures, with per barrel amounting to more than $47. Another reason for the currency’s gain is the weakening of the US dollar after calls for the Federal Reserve to take extra caution when it comes to increasing its interest rates. The CAD has been steadily increasing its value during the last 7 trading sessions before the meeting of the Federal Open Market Committee yesterday, which led to a decrease after the release of the meeting’s statement.
Investors are now expecting the release of the Canadian Consumer Price Index monthly report for its yearly and monthly data. Yearly data is expected to fall at 1.3% from last month’s 1.5%, while the monthly data is also expected to go down by -0.1% from last month’s 0.2%. Should the actual data fail to match the expected data release, then traders can expect volatility in prices as the market will try to adapt to the released financial information.