The US dollar Canadian dollar rallied to 1.3270 on Wednesday, its highest level in a month, before paring gains. The US dollar Canadian dollar exchange rate closed the session at 1.3253. The pair is currently up 0.2% across the week, its third consecutive week of gains. The pair is advancing in early trade on Thursday.

The dollar moved higher versus the Loonie, as investors digested a mixed US inflation report and after Federal Reserve Chair Jerome Powell’s speech before Congress. US headline inflation unexpectedly increased in October. Consumer prices jumped 1.8% year on year thanks to higher food and fuel prices. However, even at 1.8% inflation is still below the Fed’s 2% target meaning a rate rise could. Whilst headline inflation increased, core inflation, which strips out more volatile items such as food and fuel slipped lower to 2.3%.

The dollar slipped versus the Loonie following Federal Reserve Jerome Powell’s speech before Congress. In prepared remarks Jerome Powell said that interest rates would most likely stay where they are as long as the economy continued to grow. Fed Powell acknowledged the risks of slowing global growth, inflation and trade. However, he also said that he believed that policy is appropriate to the risks to outlook. There was nothing new in Jerome Powell comments for investors to really sink their teeth into, as a result the dollar’s reaction was muted.

Today the dollar is advancing in a risk off environment as US – China trade talks hit another snag; this time over agriculture purchases. US – China trade, weak Chinese data and continued trouble in Hong Kong are weighing on sentiment sending investors in search of the safe haven dollar

Canadian Dollar Pares Losses On Oil Strength

The Loonie clawed back lost ground in the US session on Wednesday as oil staged a comeback. The Secretary General of OPEC Mohammad Barkindo on Wednesday noted that the fundamentals of the global economy were still strong, with no sign of a global recession approaching. He added that oil demand figures for 2020 have the potential for further upside, providing a boost the price of crude oil.

As oil gained 1% across the session, the commodity related Loonie also received a boost paring loses versus the dollar.

In the absence of high impacting Canadian data, crude oil inventory data due to be released later today could drive the price of the Canadian dollar. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.