The Canadian dollar resumes its rally. After it withstood the recovery of the US dollar, the loonie makes a new move to the upside. USD/CAD reached a new low of 1.2914, the lowest since September 2016.
The C$ advances alongside oil prices. While OPEC production is on the rise due to a ramp up in production from Nigeria and Libya, it seems that US shale output has reached a peak. We have already learned that the numbers of rigs rolled over and that production is slowing down.
WTI Crude Oil is trading above $47, a level which used to be a line of support. This is not a great leap in comparison to yesterday, but still a boost.
More: The Canadian dollar doesn’t need oil – it has the strong local economy
Independence Day(s)
Another reason for the rise today and not yesterday is the timing of the US and Canadian Independence Days. Canada celebrated 150 years and enjoyed a long weekend. Canadian traders were away but now they are back to boost their currency. US traders are away today for the 4th of July festivities.
Support awaits the pair at 1.2820, followed by 1.2750. Resistance is at 1.3080.
