October 14, 2021

This is the factor that drives the USD/CAD plunge

 The weakness of the greenback dollar was a factor in the strengthening of the loonie dollar to strengthen at a three -month high, as well as supported by high world crude oil trade.

Tracking into the European session, the loonie dollar traded 0.3% higher against the U.S. dollar, extending the gains recorded since strong Canadian jobs data last week.

The greenback continued to retreat from the one -year high it reached on Wednesday, following a decline in 10 -year U.S. bond yields even as U.S. inflation data showed price pressures were mounting in September.

Crude oil prices also continued to show strengthening at annual highs following concerns over supply shortages amid rising global demand.

Positive news from the United States also supported the currency’s trade, when it reportedly would lift restrictions at the borders to Canada and Mexico for fully vaccinated tourists entering the country.

This will boost all economic activities between the countries that have been delayed since the Covid-19 pandemic.