The weakness of the loonie dollar continued after the minutes of the FOMC meeting gave the greenback the strength to grab a strengthening.
The Federal Reserve (Fed) has indicated that they will raise interest rates earlier this year if the job market continues to show continued improvement.
In line with that, the loonie dollar again extinguished its gains by trading lower at around 1.2800 against the US dollar.
Meanwhile, the movement of the commodity currency was also affected by crude oil trading which recorded a decline from the one -month high it reached in the previous session.
The decline in oil prices was driven by disappointing data readings in the U.S. crude oil supply report from the Energy Information Administration (EIA).
Most recently, the EIA reported U.S. crude oil stocks fell last week, but gasoline inventories soared more than 10 million barrels making it the biggest weekly increase since April 2020.
This indirectly shows signs of a reduction in demand as people are wary of traveling following the increase in Omicron variant cases.
The market’s focus is now targeted on the publication of Canadian employment data that will be released alongside the US NFP report on Friday.
