USD/CAD sinks to 1-week low as U.S. stocks, oil prices rise

NEW YORK (Forex News Now) – The Canadian dollar climbed against the greenback on Wednesday, hitting a 1-week high, as U.S. stocks rallied and oil prices advanced above USD 74 a barrel.

In U.S. afternoon currency trading, USD/CAD traded at 1.0476, down 0.64 percent on the day and one pip above the daily low of 1.0475, the currency pair’s lowest since June 30.

Earlier Wednesday, crude oil followed U.S. stock markets higher after an upbeat earnings forecast from a major bank, State Street Corp., improved investor sentiment ahead of the upcoming earnings season.

According to forex analysis, USD/JPY is likely to touch immediate support around the low of July 1, 86.97, and encounter resistance around the high of June 30, 88.76.

The loonie’s gains came despite a disappointing report which showed that purchasing activity in Canada slowed unexpectedly in June from a month earlier.

Meanwhile, the Canadian dollar jumped versus the euro: EUR/CAD traded at 1.3246, down 0.51 percent on the day.

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