The Canadian dollar erased more than 1% versus the US dollar Thursday, following its hefty gains yesterday, as market participants repurchased the greenback and on mild oil prices.
Oil prices also tumbled, with Brent crude wiped out almost 2%, settling below $55 per barrel, and US crude lost nearly 2% at C$44 per barrel.
The loonie rallied more than 2% on Wednesday.
There is still a somewhat substantial “bias to hold on to CAD shorts for now,” said Bipan Rai, Director of Foreign Exchange Strategy at CIBC World Markets.
The currency closed at C$1.2726 per greenback or 78.58 US cents, from Wednesday’s C$1.2570 or 79.55 US cents.
On the other hand, investors will focus on Canadian retail sales data for January and inflation figures for February due Friday.
The material has been provided by InstaForex Company – www.instaforex.com