Canadian dollar dropped against its US counterpart for the first time in four days, as crude oil prices, Canadas largest export, registered the biggest slide in a week.
“The Canadian dollar remains a high-beta currency, and fluctuations in the oil price will always affect it more,” said Eimear Daly, a currency market analyst at Monex Europe Ltd., cited by Bloomberg.
USD/CAD pair fell off a session high at 1.0254, highest value since Friday, to current levels at 1.0198-1.0203 during the early phase of US trade. The cross was still up by 0.17% for the day. Support was expected at Mondays low, 1.0166, while the pair was likely to meet resistance at Mondays high, 1.0287.
Meanwhile, futures on crude oil declined by almost 1.3% to 94.50 USD per barrel in New York ahead of a report forecast, which may show oil stockpiles increased last week in the United States. Crude oil inventories probably rose by 550 000 barrels to 391.8 million last week, while US gasoline supplies increased by 500 000 barrels to 219.3 million, according to a Bloomberg News survey.