USD/CAD: Why It May Be Heading Toward 1.08

Written by Terri Belkas, Currency Analyst On Tuesday, the Canadian dollar tumbled versus the US dollar for a variety of reasons, including a drop in the price of oil, disappointing Canadian retail sales, and hawkish comments by a Fed official. Meanwhile, USD/CAD faces additional event risk on Wednesday from the release of Canadian CPI. How will it impact the pair, and more importantly, will it help or hurt the case for price to rally toward 1.08? Why Did USD/CAD Surge Over 100 Points Higher On Tuesday? Oil Futures Down 2.9% - Since hitting a record high of $147.27/bbl on July 11, crude oil futures have fallen significantly. In fact, the commodity dropped 2.9 percent on Tuesday alone to close at $127.25/bbl amidst speculation that Tropical Storm Dolly would not disrupt production at the major oil-drilling and transport hubs in... [read full story]