USD/CAD Loonie Slightly Higher on US Thanksgiving Despite Softer Oil Prices

The USD depreciated 0.0632 percent versus the CAD during the U.S. Thanksgiving holiday. There was little trading volume during the session. The USD/CAD traded in a range between 1.3320 and 1.3280. The Loonie opened weaker versus the U.S. dollar and as the price of oil dropped as the oversupply narrative grew during the day. As the session winded down the CAD started to advance versus a USD as America was getting ready for Thanksgiving dinner.

The Euro is hovering near seven-month lows with little movement during the American Thanksgiving holiday that has restricted liquidity in today’s market.

The European Central Bank (ECB) meeting next week is anticipated to add more stimulus to the existing quantitative easing program which boosted European equities, but less participants in the market there was no real change in the price of the single currency.

Geopolitical tensions continue to dominate headlines as Russia has pledged to retaliate via economic means as it plans to scrap some of the investments in Turkey.

Price of Oil Slides lower awaiting next week’s OPEC Meeting

The downward pressures on the price of energy drove it lower as oversupply persists with diminishing demand. The geopolitical turmoil in the Syrian border did not support the continuation of the rally in crude prices. All eyes are focused on next week’s Organization of the Petroleum Exporting Countries (OPEC) meeting where a production cut will be demanded by a vast majority of members, but it is uncertain where the Saudi vote and its powerful influence will fall.

Canadian dollar events to watch this week:

Friday, November, 27
8:30 am CAD RMPI m/m

*All times EST
For a complete list of scheduled events in the forex market visit the MarketPulse Economic Calendar

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