FXStreet reported USD/CAD around 1.4110 in Asian trading as lower oil and strong U.S. hiring offered conflicting signals for the Canadian dollar ahead of U.S. inflation releases.
The outlet’s update appeared at 9:36 p.m. ET Sunday, Nov. 8 (02:36 UTC Monday, Nov. 9). It said the pair turned lower after rising over the two earlier sessions. The rate counts Canadian dollars per U.S. dollar, so a decline signals a stronger Canadian dollar against its U.S. counterpart.
The Bank of Canada’s latest available daily average was 1.4113 on Nov. 6, compared with 1.3989 on Nov. 5. The central bank labels these figures indicative daily averages, so they are not a direct comparison with FXStreet’s Monday intraday quote. FXStreet has described crude as a headwind for the commodity-sensitive Canadian currency. The update follows earlier reporting on the loonie’s response to Iran-related oil hopes.
Oil prices fell at the start of Monday trading. Reuters reported Brent at $97.48 a barrel at 8:38 p.m. ET Sunday (01:38 UTC Monday), down 84 cents, or 0.85%. West Texas Intermediate was at $90.51, after a 32-cent, or 0.35%, decline. Reuters linked the move to President Donald Trump’s remarks that further U.S. strikes on Iran were unlikely if negotiations produced a strong agreement.
Brent lost 17% over the previous week, its largest weekly percentage decline since the COVID-19 pandemic began, Reuters reported. LSEG records dating to 1988 show no larger one-week loss in dollar terms, the outlet said.
The U.S. Bureau of Labor Statistics (BLS) said employers added 165,000 jobs in October and the unemployment rate stood at 4.1%. The agency revised September’s payroll increase to 60,000 from its earlier 29,000 estimate. FXStreet viewed the labor report as a possible source of support for the U.S. dollar, which could limit further declines in USD/CAD.
The Bank of Canada raised its overnight rate by 0.25 percentage point to 2.5% on Oct. 28. It said the increase was intended to limit the risk that persistently high energy prices would lift prices for other goods and services. The BLS is scheduled to release the October Consumer Price Index at 8:30 a.m. ET Tuesday, Nov. 10 (13:30 UTC), followed by the October Producer Price Index at the same time Friday, Nov. 13. The Federal Reserve’s next meeting is Dec. 8-9, and the Bank of Canada’s next rate announcement is Dec. 9.
