The loonie weakened to a near 2 months low, breaking out of its recent short-term range. The Canadian dollar closed the session almost 0.50% weaker, around 1.2952 versus the USD.
Broad USD strength put upward pressure on the USDCAD. The 1.29 level was acting as a strong resistance recently but as soon as it was broken, the cross almost hit 1.30, settling around 1.2950 afterwards.
Price of oil didn’t help, although it recovered a bit after US President Trump announcement around the Iran nuclear deal, prices where down as much as 4% earlier putting more pressure on the loonie. Moreover, there doesn’t seem to be any breakthrough from NAFTA negotiations, probably also weighting on the CAD.
Keep an eye on Canada’s job report on Friday.