The USD/CAD pair lost nearly 200 pips on Friday as crude oil prices surged and the Canadian jobs report was upbeat. The pair was last seen trading in negative territory at around 1.3350. This article will explore the impact of these events on the currency pair, as well as provide some insights into the current state of the market.
Crude Oil Prices Impact on USD/CAD
Crude oil prices have a significant impact on the value of the Canadian dollar, as Canada is a major oil-producing nation. The surge in crude oil prices on Friday was due to a combination of factors, including strong demand, production cuts, and geopolitical tensions.
The barrel of West Texas Intermediate (WTI) was up 1% on the day, slightly above $72, after having gained 4% on Friday. This surge in crude oil prices caused the USD/CAD pair to lose nearly 200 pips, as traders began to favor the Canadian dollar.
Upbeat Canadian Jobs Report Impact on USD/CAD
The Canadian jobs report for April was also released on Friday, and it was more upbeat than expected. The report showed that Canada added 290,000 jobs in April, which was well above the expected 75,000 jobs. The unemployment rate also dropped to 8.1% from 8.5% in March.
This positive jobs report further strengthened the Canadian dollar and caused the USD/CAD pair to lose value. The pair was last seen trading in negative territory at around 1.3350, as traders moved away from the US dollar.
Current State of the Market
The current state of the market is heavily influenced by the ongoing pandemic, as well as geopolitical tensions and economic uncertainty. The COVID-19 pandemic has had a major impact on the global economy, causing volatility in the currency markets.
Geopolitical tensions, such as those between the US and China, can also cause fluctuations in the currency markets. Economic uncertainty, such as the impact of Brexit on the UK economy, can also have an effect on currency values.
In conclusion, the USD/CAD pair lost nearly 200 pips on Friday as crude oil prices surged and the Canadian jobs report was upbeat. These events highlight the impact that external factors can have on the currency markets. The current state of the market is heavily influenced by the ongoing pandemic, as well as geopolitical tensions and economic uncertainty. Traders should stay up-to-date with the latest news and events in order to make informed trading decisions.