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USD/CAD at 1.0450 as Crude Oil Falls

The Canadian dollar traded at almost the weakest level in two months amid a slide in crude oil, the nation’s biggest export, and as the discount that western Canadian oil faces headed toward the widest on record.

The currency fell for a second day as traders awaited economic reports this week after data on Oct. 31 showed gross domestic product grew in August more than forecast, while the Bank of Canada a week earlier cut its economic forecasts. The discount applied to the heavy crude of Canadian producers versus lighter U.S. benchmarks increased to the most since December.

“That’s a large enough move in my mind that it would start to have some implications,” Alan Ruskin, Deutsche Bank’s global head of Group-of-10 foreign exchange, said by phone from New York of the oil figures. “When you have large enough movements, it starts to get flagged as a potential, dare I say, souring effect on Canadian-dollar sentiment.”

Bloomberg [1]

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