USD/CAD tumbles to fresh 9-month lows

USD/CAD broke below 1.2630 and tumbled to 1.2591, hitting the lowest level since July 6, 2015. A sharp increase in crude oil prices helped the loonie break higher across the board.

The Canadian dollar is among the top performers in the market and versus the US dollar is about to post the fourth daily decline in a row as it continues with the downtrend.

From January highs it has fallen now 2000 pips. During the current week it dropped below the 38.2% Fibonacci retracement of the rally that started from 0.9700 (September 2012), opening the doors for more declines.

Crude oil jumps

The WTI barrel is rising almost 2%, trading near $42.00 while the Brent is testing 2016 highs. Crude remained at daily highs even after rumors of OPEC meeting in May were denied and despite an increase in oil inventories.