The Canadian dollar gained against its US equal on Thursday as soaring oil prices due to supply concerns supported the commodity currency, but traders stayed wary ahead of both the US and Canadian jobs reports.
The USDCAD pair fell to 1.2537 today, down from Wednesday’s close of 1.2587. However, the Canadian dollar lost over 1.2% in August and further depreciated over 0.5% last month.
Canada is the world’s fourth-largest exporter of crude oil, which point higher as OPEC+ kept its crude oil output stagnant at the current pace. The OPEC+ group agreed to boost its output by 400k barrels per day (bpd) every month for at least until April 2022.
Traders also stay vigilant as they approach the US NFP report late this Friday that could provide a look at the next move of the Federal Reserve. Canada releases important employment data on Friday as well. The Canadian dollar could increase if both releases come in stronger than expected, although the employment report in the United States will obviously be the most important.
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