On Thursday the USD/CAD touched a new 5-month high at 1.3360 pushed by a weak crude; however, the Fed chairman, Jerome Powell in the US sent dovish comments about their economy, helping the Loonie to erase early losses. The Loonie rallied to an intraday low of 1.3242. In general, the Loonie has not had a significant change this week following Powell’s comments and initial weak crude prices.
So far the Loonie is highly influenced by crude, which was trading below $ 50 on Thursday morning. However, oil recovered from earlier losses to move above $ 50 after reports that Russian officials are signaling the likelihood of a production cut in tandem with Organization of the Petroleum Exporting Countries. The reports came ahead of a planned meeting between Russian President Vladimir Putin and the Saudi Crown Prince Mohammad Bin Salman at the Group of 20 Nations Summit in Buenos Aires this weekend.