Canada Dollar Declines as Crude Oil Drops
Canada's currency fell after crude oil dropped to a five-month low and the U.S. dollar rose against other major currencies.
The Canadian dollar traded at C$1.0689 against its U.S. counterpart at 10:38 a.m., down 0.2 percent from yesterday's C$1.0667.
Crude oil for October delivery touched $105.46 a barrel on the New York Mercantile Exchange, the lowest since April 4, as Hurricane Gustav spared U.S. Gulf states the destruction caused by Katrina and Rita in 2005. Commodities, including oil, account for about half of Canada's export revenue.
The Bank of Canada meets tomorrow on interest rates.
Lower crude price is one of the things causing weakness in the Canadian dollar.
My trading system signals BUY for USDCAD.
Bought 10,000 USDCAD at 1.0714
Stop level at 1.0610
Target level at 1.0908
Chart:
Forex & Binary Trading: Canada Dollar Declines as Crude Oil Drops