USD/CAD drops toward 1.3300, 3-week lows

The Canadian dollar is today among the top performers in the currency market. Yesterday the rally in crude oil prices failed to boost the loonie but today the currency is rising sharply. 

USD/CAD accelerate the decline during the American session after breaking below 1.3350. Recently dropped to 1.3303, the lowest since November 9. Currently trades at 1.3305, down 0.90% for the day or 135 pips, the worst performance in months. 

Crude oil keeps rising 

The pair appears to be reacting to the rally in crude oil prices. Since yesterday the WTI barrel has risen 13% following the OPEC deal and now is headed toward a close above $50. According to analysts from Nomura, crude prices will continue to rebound gradually in the year ahead moving towards $60 next year.

Key data ahead 

During the next hours, particularly after Wall Street closing bell, volatility across financial markets is likely to trend lower as usually happens before the NFP. Tomorrow, at the same time (13:30 GMT), the official employment reports from the US and also Canada will be released. Those economic numbers should push volatility to the upside.