8 Apr 2015
USD/CAD spikes above 1.2500 as oil slumps
FXStreet (Córdoba) - USD/CAD rose sharply reversing intraday losses as the loonie weakened in tandem with falling oil prices after data showed US crude inventories continued to grow.
US Energy Information Administration said commercial crude inventories jumped by 10.9 million barrels to 482.4 million in the week ended April 3, far above the 3.42 million barrel rise expected. Crude shed more than 2% to near $52 a barrel, while USD/CAD rose about 130 pips to a high of 1.2546.
The greenback was also helped by comments from NY Fed President Dudley who said a June rate hike is still possible if the economy is strong and unemployment dropping.
USD/CAD has eased a few pips from highs over the last minutes and it is currently trading at 1.2510, virtually unchanged on the day, having scored a 3-week low of 1.2386 ealier on the day.
Attention turns now to the FOMC meeting minutes although experts believe the they are unlikely to provide surprises.
US Energy Information Administration said commercial crude inventories jumped by 10.9 million barrels to 482.4 million in the week ended April 3, far above the 3.42 million barrel rise expected. Crude shed more than 2% to near $52 a barrel, while USD/CAD rose about 130 pips to a high of 1.2546.
The greenback was also helped by comments from NY Fed President Dudley who said a June rate hike is still possible if the economy is strong and unemployment dropping.
USD/CAD has eased a few pips from highs over the last minutes and it is currently trading at 1.2510, virtually unchanged on the day, having scored a 3-week low of 1.2386 ealier on the day.
Attention turns now to the FOMC meeting minutes although experts believe the they are unlikely to provide surprises.