Canadian Dollar Strengthens But Outlook Still Uncertain

 
   By Ben Dummett 
 

        TORONTO--The Canadian dollar strengthened against the U.S. dollar Tuesday, benefiting in part from a rebound in crude prices.
        The U.S. dollar was recently at C$1.2960, from C$1.2999 late Monday, according to data provider CQG.
        The Canadian dollar strength follows a decline in the previous session, underscoring its strong link to resource prices, particularly to the price of crude because of the commodity's importance to the domestic economy. Canada is a net energy exporter and the industry makes up about 10% of the country's GDP.
        In New York, crude prices edged higher as the U.S. dollar weakened. Oil is priced in that currency making it more expensive for European and Asian buyers when the U.S. dollar strengthens.
        Still, the Canadian dollar remains at risk to further weakness with oil at multi-month lows amid worries of oversupplies and a domestic economy struggling to generate growth.
        The currency will likely consolidate this week given a relative absence of new economic data, but the broad trend is still towards a weaker Canadian dollar, said Matt Perrier, managing director of corporate sales and structuring at BMO Capital Markets.
        Write to Ben Dummett at ben.dummett@wsj.com
        (END) Dow Jones Newswires

        July 21, 2015 15:48 ET (19:48 GMT)

#FX
#Forex
#SaleForex
#CanadianDollarStrengthens
#ButOutlook
#StillUncertain
#CrudePrices