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8 Jan 2015
USD/CAD goes through a consolidation phase
FXStreet (Córdoba) - USD/CAD stabilized on Thursday, having spent most of the day in a tight range just above 1.1800, as oil prices are taking a breather after hitting fresh 6-year lows the previous day.
Canadian dollar has been sensitive to oil prices, which slumped more than 50% since June, as Canada is a major crude exporter. On Wednesday, USD/CAD reached a 5 ½-year high of 1.1873 coincidentally with oil hitting a low of $47.23 a barrel.
However, USD/CAD pulled back from highs and is going through a phase of consolidation, contained by 1.1800 on the downside and capped by 1.1840 on the upside. At time of writing, the pair is trading at mid-range, effectively unchanged on the day.
Moreover, investors remain sidelined as they await employment figures for December for the United States and Canada, which are due on Friday.
Canadian dollar has been sensitive to oil prices, which slumped more than 50% since June, as Canada is a major crude exporter. On Wednesday, USD/CAD reached a 5 ½-year high of 1.1873 coincidentally with oil hitting a low of $47.23 a barrel.
However, USD/CAD pulled back from highs and is going through a phase of consolidation, contained by 1.1800 on the downside and capped by 1.1840 on the upside. At time of writing, the pair is trading at mid-range, effectively unchanged on the day.
Moreover, investors remain sidelined as they await employment figures for December for the United States and Canada, which are due on Friday.