The currency pair USD/CAD has rebounded to reach a high above the resistance level of 1.3200 since late this week, it touched a fresh five-month low below 1.2900. The given rebound took place as crude prices leapt back for the last several trading sessions, thus bringing the oil-correlated CAD down.
Renewed pressure on crude prices arose after failed negotiations among key OPEC nations as for coordinating a cap on oil production. The matter is that some OPEC members found it quite difficult to accept a concerted production cap if Iran refuses to join. However, Iran is trying to catch up with lost time and profits after fierce sanctions on this country have been recently lifted.
For about two months, the currency pair USD/CAD has tumbled abruptly from its January’s high of 1.4600, because oil has leapt back, thus backing up the CAD, while the greenback has drastically sagged following low expectations for further Fed’s interest rate hikes.
Currently, traders are waiting for the official release of the Fed’s meeting minutes as well as government reports on employment.