The Canadian dollar has been bearish for the last six months against the U.D. dollar and is trading within the rough range of 1.2950-1.3550 since mid-September. And with the limited economic data for next the upper band may be tested as oil trades slip.
The Canadian unemployment rate report is set to be released and may shed a light into the current state of the Canadian Dollar that might give it a short-term boost. The recent fall in crude oil that was below $50 per barrel which was down by 9% by monthly average has kept pressing on the already pressured Canadian dollar.
In a weekly data shows that the U.S. crude oil stock were jumping to 528 million barrels up to 8.2 million barrels in a week which was a spike higher than the estimated 2 million barrels.
Soft oil prices and the impact on the Canadian energy sector are not only the recent developments that is causing problem for the Canadian Dollar.
The U.S. president Donald Trump said that he will work at experimenting with the current trade agreement between the U.S. and Canada. That is with the U.S> taking charge of 75% of Canada’s exports. Canada’s economy is very unstable and any changes in the trade industry will likely hurt the Canadian currency
The coming week will pose another problem for the Canadian Currency, the Federal Reserve is expected to hike interest by another 0.25%