USD/CAD Lower After Oil Drop

The Canadian dollar weakened against a stronger greenback on Tuesday, as oil prices softened, but the currency remained an outperformer against many of its major counterparts.

“It’s holding up rather well is the bottom line, really … all the other major currencies have basically unwound the gains they made after the (U.S.) payrolls report on Friday,” said Adam Cole, global head of FX strategy at RBC Capital Markets in London.

With little economic news on the Canadian calendar until jobs data on Friday, the direction of the U.S. dollar and commodity prices are expected to be the main drivers for the loonie.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza