The US Dollar continues to move up against its northern neighbor’s currency, closing at 1.2448 and rising against the Canadian Loonie for a fourth consecutive day.
The USD/CAD gained 0.445 percent in the last 24 hours. Following the report on crude and gas inventories, the currency pair broke through the 1.24 price level but later stabilized slightly lower at 1.2391.
According to a report by the Energy Information Administration, commercial crude inventories fell by 4.9 million barrels in the week ending June 19 leaving the total number of oil barrels in storage at 463 million. Inventories had dropped by 2.7 million barrels the week before.
Despite the consistent weekly drop, crude stockpiles are still at the highest levels in at least 80 years. The price of crude oil stood at $63.12 a barrel Wednesday.
The Canadian economy is heavily dependent on commodity exports and the lower oil price is proving to be cumbersome. At the same time the Canadian dollar has been under considerable pressure resulting from encouraging economic data out of the U.S while positive statements from Federal Reserve members have helped strengthened the U.S. dollar even more.
Unemployment Numbers Out Soon
The number of weekly unemployment claims will be released within the next few days, adding fuel to the fire and strengthening the USD even further. The Canadian Day holiday will take place on July 1 and the start of America’s July 4th Independence Day weekend begins on Friday leaving a shortened week for both countries.
The failure of the Greek government to reach a debt deal agreement with its Eurozone partners has had a major effect on the price of the euro and continues to push the USD even higher against most currencies.